Answer:
The amount should the bank report = $ 21725
Explanation:
Entries:
3.Dr accounts payable 23375
Cr Bank 23375
4. Dr Bank 7500
Cr Account receivable 7500
5. Dr Bank 900
Cr Accounts payable 900
(Error in check)
6. Dr Bank charges 45
Cr Bank 45.
(To record bank charges)
Creative Design co
Bank Reconciliation statement
$
Balance as per bank statement as Aug -20Y6 = 37600
Adjustment:
Add: Deposit in transit = 7500
Less: Outstanding checks = (23375)
Adjusted balance 21725.
Balance as per Cash book = 20870
Less : Bank charges = (45)
Add: Error in check = 900
Adjusted Balance 21725