Using the Following Information, Prepare a Bank Reconciliation for Candace

question 67

Essay

Using the following information, prepare a bank reconciliation for Candace Co. for May 31:
(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.

---

Definitions:

Installment Note

A debt instrument that requires the borrower to make regular payments of principal and interest over a specified period until the debt is paid in full.

Issue Price

The price at which a company's securities, such as bonds or shares, are first sold to the market.

Registered Bonds

Registered bonds are securities that are recorded in the name of the holder on the issuing company's books, ensuring that interest payments are made to the registered owner.

Finance Leases

Leasing agreements that transfer substantially all risks and rewards of ownership of the asset from the lessor to the lessee.