The Cash account of Safe and Secure Security Systems reported a balance of $ 2 comma 420 at December 31 , 2018. There were outstanding checks totaling $ 1 comma 000 and a December 31 deposit in transit of $ 400. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $ 3 comma 560. Included in the bank balance was a collection of $ 550 on account from Ryan Saar , a Safe and Secure customer who pays the bank directly. The bank statement also shows a $ 30 service charge and $ 20 of interest revenue that Safe and Secure earned on its bank balance. Prepare Safe and Secure 's bank reconciliation at December 31.

Question

Business

Lindsay George

10 February, 09:48

The Cash account of Safe and Secure Security Systems reported a balance of $ 2 comma 420 at December 31 , 2018. There were outstanding checks totaling $ 1 comma 000 and a December 31 deposit in transit of $ 400. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $ 3 comma 560. Included in the bank balance was a collection of $ 550 on account from Ryan Saar , a Safe and Secure customer who pays the bank directly. The bank statement also shows a $ 30 service charge and $ 20 of interest revenue that Safe and Secure earned on its bank balance. Prepare Safe and Secure 's bank reconciliation at December 31.

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Hezekiah Tapia · Answer 1

book unadjusted: 2,420

account colleciton 550

serivce charge (30)

interest revenue 20

adjusted: 2,960

bank balance 3,560

outstanding check (1,000)

deposit in transit 400

adjusted 2,960

Explanation:

The oustanding checks and the deposists in transit are unknow information for the bank. So we adjust the bank balance to reflect this.

the collectin wasn't know for the company neither was, the serice charge and interest revenue. This generates adjustment on the cash account.