Prepare the June bank reconciliation for Low Company using the reconciling items below. The cash balance for Low Company was $8,110. The balance on the bank statement was $12,505
a. $50 bank service charge
b. $4,889 worth of outstanding checks
c. $118 check for insufficient funds returned by the bank
d. Low Company deposited $576 worth of checks that are not on the bank statement.
e. The bank collected a note receivable for Low Company worth $275.
f. The bank charged Low Company $25 to collect the note receivable.
Low Company
Bank Reconciliation
June 30, 2012
Bank Balance $12,505 Book Balance $ 8,110
Add: Add:
Deduct: Deduct:
Low Company
Bank Reconciliation
June 30, 2012
Bank Balance $12,505 Book Balance $ 8,110
Add: Add:
Deposits in transit 576 Note collected by bank 275
Deduct: Deduct:
Outstanding checks (4,889) NSF check (118)
Note collection charge (25)
Adjusted balance $8,192 $8,192
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