Problem 3
1. Why is it important to prepare a bank reconciliation when the bank statement is received from
the bank?
2. Prepare a bank reconciliation dated December 31, 2019, for Belington Inc. based on the
following information.
Balance per bank statement is $18607.04.
Balance per books is $21659.48.
The December bank statement indicated a service charge of $25.
Cheque #1269 for $550.50 and cheque #1283 for $2,750.00 were not returned with the bank
statement.
The bank had not received a deposit in transit of $6,434.22 when the bank statement was
generated.
A bank debit memo indicated an NSF cheque written by Bill Broke to Welcome Inc. on December
11, 2019, for $30.
A bank credit memo indicated an interest revenue of $136.28 on December 15, 2019.