Using the Following Information, Prepare a Bank Reconciliation for Salem $\$ 2,597$

question 91

Essay

Using the following information, prepare a bank reconciliation for Salem Co. for May 31, 2013.
(a)The bank statement balance is $\$ 2,597$ .
(b)The cash ac count balance is $\$ 2,680$ .
(c)Outstanding checks amounted to $\$ 703$ .
(d)Deposits in transit are $\$ 732$ .
(e)The bank service charge is $\$ 25$ .
(f)Interest ad ded to the che cking account by the bank is $\$ 7$ .
(g)A check drawn for $\$ 59$ was incorrectly charged by the bank as $\$ 95$ .

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Definitions:

Additive Strategy

A problem-solving technique that involves systematically adding all possible elements together to find a solution.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by how much it resembles what we consider to be a typical example of that event.

Availability Heuristic

A quick-thinking process that depends on the first examples that pop into someone's head when they are considering a particular subject, idea, approach, or choice.

Relative Comparisons

The act of evaluating something in relation to another similar item.