From the following particulars of Purple New Co., prepare the bank reconciliation statement as on May 31, 2016.

a. The bank statement balance is $4,000.
b. The cash account balance is $3,950.
c. Outstanding checks amounted to $960.
d. Deposits in transit are $900.
e. The bank service charge is $75.
f. Interest added to the checking account by the bank is $150.
g. A check drawn for $65 was incorrectly charged by the bank as $150.

Prepare a bank reconciliation for Purple New Co. for May 31, 2016. Purple New Co. Bank Reconciliation May 31, 2016

Explanation:

Bank reconciliation statement:

Cash account balance $3950

Less: Deposit in transit ($900)

Less: Bank service charges ($75)

Add: Interest added to the checking account by the bank $150

Add: Checks outstanding $960

Less: Check drawn incorrectly charged by the bank ($85) [150-65]

Adjusted balance $4,000

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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