Bank Reconciliation

Prepare Bank Reconciliation

Ella Company’s September 30 bank statement shows a balance of $53,810. Ella’s September 30 cash balance is $45,800. Hayley also has the following information: Deposits made but not appearing on the September bank statement, $5,500. Check written but not appearing on the September bank statement, $12,200. One check written for the purchase of Supplies was erroneously recorded for $890 but appears on the bank statement at $980. Monthly service charges listed on the bank statement are $230. Hayley had already recorded the effect of $130 of those charges. A customer payment for a $1,500 receivable was collected by the bank but not yet recorded by Ella.

Required: Hide Prepare Ella’s bank reconciliation as of September 30.

Prepare any necessary journal entries resulting from the reconciliation.

Sample Solution