Using the following information, prepare a bank reconciliation for Blossom Company for July 31, 2022. a. The bank statement balance is $3,690. b. The cash account balance is $4,110. c. Outstanding checks totaled $1,330. d. Deposits in transit are $1,670. e. The bank service charge is $62. f. A check for $86 for supplies was recorded as $68 in the ledger.

                                              Blossom Company

                              Bank Reconciliation statement for July 2022

                                                                    Amount in $        Amount in $

Balance per Bank statement                                                      3,690

less:

Outstanding checks                                                                    (1,330)

Add;

Deposit in transit                                               1,670

Bank service charge                                              62

Erroneous check entry                                           18                 1,750

Balance per cash ledger                                                             4,110

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.

To reconcile both balances;

The Deposit in transit has been recorded in the books and will be added to the bank balance. The bank charge has been recorded in the bank statement but not in the books hence it is added back to the bank statement balance. The  error in the check to supplier amounts to

= $86 - $68

= $18

This has been under-recognized in the cash ledger as a deduction hence the difference is added to the bank statement balance. Outstanding check has been deducted from the cash ledger hence it is deducted from the bank statement balance.

answer/// equals both average variable cost and average total cost at their respective minimums;