As of June 30, Year 2, the bank statement showed an ending balance of $18,039. The unadjusted Cash account balance was $17,093. The following information is available: Deposit in transit $2,905.
Credit memo in bank statement for interest earned in June $22.
Outstanding check $3,836
Debit memo for service charge $7

Required:
Determine the true cash balance by preparing a bank recondiliation as of June 30, 2016.

the true cash balance is $17,108

Explanation:

First, update the Cash Book Bank Balance as follows :

Cash Book Bank (Balances Only)

Debit :

Balance as per Cash Book                                          $17,093

Interest Earned                                                                   $22

Totals                                                                              $17,115

Credit :

Service charge                                                                     $7

Balance as per updated Cash Book (Balance)           $17,108

Totals                                                                              $17,115

Next, Prepare a Bank Reconciliation Statement as follows :

Bank Reconciliation Statement

Balance as per Bank Statement                                $18,039

Add Lodgements not yet credited                             $2,905

Less Unpresented Cheques                                      ($3,836)

Balance as per Cash Book                                          $17,108

the answer should be demonstrations i hope this

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.