A company has the following information related to its cash balance at the end of the period.1. Cash on hand at the company and not yet deposited at the bank. $ 3,6002. EFT for monthly utility bill not yet recorded by the company. 1,2003. Note collected by the bank and not yet recorded by the company. 10,0004. Interest collected by the bank from note in #3 not yet recorded by the company. 1,0005. Debit card used to purchase supplies not yet recorded by the company. 8006. Checks written by the company but not yet processed by the bank. 3,1007. Service fee charged by bank but not yet recorded by the company. 1008. Customer checks determined by the bank to have nonsufficient funds. 2,7009. Bank balance at the end of the period. 17,30010. Company balance at the end of the period (prior to reconciliation). 11,600Required:(a) Reconcile the bank’s balance and the company’s balance, (b) verify that the two balances per reconciliation are equal, (c) record the entries to update the company’s cash balance, and(d) calculate the ending balance of cash. What would the bank reconciliation look like if the company’s balance of cash (prior to reconciliation) was instead $10,000?
A company has the following information related to its cash balance at the end of the period.
1. Cash on hand at the company and not yet deposited at the bank. $ 3,600
2. EFT for monthly utility bill not yet recorded by the company. 1,200
3. Note collected by the bank and not yet recorded by the company. 10,000
4. Interest collected by the bank from note in #3 not yet recorded by the company. 1,000
5. Debit card used to purchase supplies not yet recorded by the company. 800
6. Checks written by the company but not yet processed by the bank. 3,100
7. Service fee charged by bank but not yet recorded by the company. 100
8. Customer checks determined by the bank to have nonsufficient funds. 2,700
9. Bank balance at the end of the period. 17,300
10. Company balance at the end of the period (prior to reconciliation). 11,600
Required:
(a) Reconcile the bank’s balance and the company’s balance, (b) verify that the two balances per reconciliation are equal, (c) record the entries to update the company’s cash balance, and
(d) calculate the ending balance of cash. What would the bank reconciliation look like if the company’s balance of cash (prior to reconciliation) was instead $10,000?
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