Using the following information: (a) The bank statement balance is $3,868. (b) The cash account balance is $3,971. (c) Outstanding checks amounted to $764. (d) Deposits in transit are $743. (e) The bank service charge is $115. (f) A check for $30 for supplies was recorded as $21 in the ledger. Required: Prepare a bank reconciliation for Miller Co. for August 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. "Deduct" or "Add" will automatically appear if it is required. Enter all amounts as positive values.

                  Bank reconciliation for Miller Co. for August 31

                                                        Amount in $           Amount in $

Bank statement Balance                                                3,868

Add;

Deposits in transit                                743  

Bank service charge                            115  

Error in check for supplies                      9                        867

Deduct;

Outstanding checks                                                          764

Cash account balance                                                     3,971

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

To reconcile the two balance moving from the bank statement balance to the cash account balance;

Deposit in transit has been debited to the cash balance hence it will be added to the bank. Bank service charge has been deducted from the bank and will be added back.

The erroneous recorded of the check shows that the cash account balance was under credited by $9 hence it will added to the bank statement balance. The outstanding check has been deducted from the cash balance and will be deducted from the bank statement balance.

answer (b); /// a method of measuring the opinions of a large group of people by selecting a subset of the larger group, asking them a set of questions and then generalizing those responses;