Prepare a bank reconciliation for Candace Co. for May 31 using the information below. Refer to Suggested Labels provided for suggestions for wording. (a) The bank statement balance is $2,936. (b) The cash account balance is $3,194. (c) Outstanding checks amounted to $465. (d) Deposits in transit are $655. (e) The bank service charge is $50. (f) A check for $97 for supplies was recorded as $79 in the ledger. Suggested Labels (not guaranteed to apply to this problem): Bank service charge Deposits in transit Error in recording check Outstanding checks NSF check Error in check by bank Notes receivable and interest collected

                           Bank reconciliation for Candace Co. for May 31

                                                             Amount in $           Amount in $

Balance per Bank statement                                               2,936

Less;

Outstanding checks                                                              (465)

Add;

Deposits in transit                                   655

Bank charge                                              50

Erroneous check to supplier                     18                         723

Balance per cash account                                                   3,194  

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

The outstanding checks has been deducted from the cash book hence it will be deducted from the bank statement balance in the reconciliation statement.

The bank charges is yet to be  recorded in the cash books as a deduction hence it will be added back to the bank statement balance in the reconciliation statement.

The bank deposit has been recorded as an inflow in the cash balance hence it will be added to the bank balance in the reconciliation statement.

The erroneous check amount difference

= $97 - $79

= $18

This will be added to the banks balance as it has been underdeducted in the cash balance in the reconciliation statement.

a

explanation:

answer; ///product strategy;