Certainly! Let's prepare a bank reconciliation step-by-step for Johnson Enterprises as of October 31.
### Johnson Enterprises
### Bank Reconciliation
### October 31, 20--
1. Bank statement balance, October 31:
The initial balance as per the bank statement is [tex]$5,217.
2. Add deposits in transit:
- October 29:
- Deposit of $[/tex]210
- October 30:
- Deposit of [tex]$406
The sum of these deposits ($[/tex]210 + [tex]$406) is $[/tex]616.
Total deposits in transit: [tex]$616
The deposits in transit represent the bank transactions that have been initiated but not yet completed through the banking system. This is why they need to be added to the bank statement balance to reconcile the balances accurately.
Calculating the reconciled bank balance:
\[ \text{Bank statement balance} + \text{Deposits in transit} = \$[/tex]5,217 + \[tex]$616 = \$[/tex]5,833 \]
So, the reconciled bank balance for Johnson Enterprises as of October 31 is [tex]$5,833.
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### Summary of the Bank Reconciliation:
Bank statement balance, October 31: $[/tex]5,217
Add deposits in transit:
- October 29: [tex]\(\quad\$210\)[/tex]
- October 30: [tex]\(\quad\$406\)[/tex]
[tex]\( \quad\boxed{616} \)[/tex]
Reconciled bank balance, October 31: $5,833
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This reconciliation ensures that the company's recorded bank balance aligns with the actual bank statement after accounting for deposits in transit.
