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The balance in Jahapp Inc.’s Cash account was $6,320 at April 30, 2019 before reconciliation. The April 30, 2019 balance shown in the bank statement was $4,590. Reconciling items included deposits in transit, $2,600; bank service charges, $140; outstanding checks, $950; and interest credited to the bank account during the month but not recorded on the company’s books, $60. The reconciled balance at April 30, 2019 is:

Respuesta :

anwar96iqbal

Answer:

$6,240.

Explanation:

                                     Reconciliation Statement

Bank balance before reconciliation                                $4,590

Add: Deposits in transit                                                      2,600

Less: Outstanding Checks                                                  (950)

Reconciled Bank Balance at April 30, 2019                $6,240

Cash balance before reconciliation                               $6,320

Add: Interest Revenue                                                           60

Less: Bank service charges                                                (140)

Reconciled Cash Balance at April 30, 2019               $6,240

Notes

- Deposit in transit and Outstanding checks are already recorded in company's books but not yet recorded with the bank because these checks might have reached bank after working hours. So, we have to update the bank's record.

- We have to update the cash balance with the information that is with the bank and has been provided to us at the period end. This include the interest revenue, already updated in the bank balance, and bank service charges.

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