On April 1, 2019, Lester Company received a bank statement that showed a balance of $8,950. Lester showed an $8,000 checking account balance. The bank did not return check No. 115 for $750 or check No. 118 for $370. A $900 deposit made on March 31 was in transit. The bank charged Lester $20 for check printing and $250 for NSF checks. The bank also collected a $1,400 note for Lester. Lester forgot to record a $400 withdrawal at the ATM. Prepare a bank reconciliation.

Bank Reconciliation Statement

Balance at Bank as per updated Checking Account    $8,730

Add Unpresented Cheques

Check No. 115                                              $750

Check No. 118                                               $370           $1,120

Less Lodgements not yet credited                                 ($900)

Balance as per Bank Statement                                     $8,950

Explanation:

The first Step is to update the Bank Balance in the Cash Book as follows :

Debit :

Cash Balance before adjustments                                $8,000

Credit Transfers                                                               $1,400

Totals                                                                               $9,400

Credit:

Printing Charges                                                                  $20

Dishonored Cheques                                                        $250

Error; Atm Drawings                                                          $400

Balance as per updated Cash Book                              $8,730

Totals                                                                               $9,400

Then, Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance at Bank as per updated Checking Account    $8,730

Add Unpresented Cheques

Check No. 115                                              $750

Check No. 118                                               $370           $1,120

Less Lodgements not yet credited                                 ($900)

Balance as per Bank Statement                                     $8,950

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