The following information pertains to Sunland Company. 1. Cash balance per books, August 31, $7,374. 2. Cash balance per bank, August 31, $7,338. 3. Outstanding checks, August 31, $706. 4. August bank service charge not recorded by the depositor $58. 5. Deposits in transit, August 31, $3,610. In addition, $2,926 collected for Sunland Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Sunland Company. (a) Prepare a bank reconciliation at August 31, 2022.

The preparation is presented below:

Explanation:

The preparation of the bank reconciliation statement is presented below

                                         Sunland company

                         Bank reconciliation statement  

                                  August 31, 2022

Particulars                      Amount         Particulars            Amount  

Bank cash balance       $7,338    Company cash balance $7,374

Add: Deposits in transit $3,610   Add: Collected              $2,926

Less: Outstanding                        Less: service fee              -$58

Check                            - $706

Bank balance                                          Company balance

After reconciliation        $10,242           After reconciliation           $10,242

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