A company’s bank statement balance is $4,500 and shows a service charge of $15,interest earned of $5, and an NSF check for $300. Deposits in transit total $1,200;outstanding checks are $575. The company’s bookkeeper erroneously recorded acheck received from a customer as a $152 check when it was actually a $125 check.This created a book error of $27.(1) What is the adjusted bank balance?(2) What was the book balance of cash before the reconciliation?
A company’s bank statement balance is $4,500 and shows a service charge of $15,interest earned of $5, and an NSF check for $300. Deposits in transit total $1,200;outstanding checks are $575. The company’s bookkeeper erroneously recorded acheck received from a customer as a $152 check when it was actually a $125 check.This created a book error of $27.(1) What is the adjusted bank balance?(2) What was the book balance of cash before the reconciliation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company’s bank statement balance is $4,500 and shows a service charge of $15,
interest earned of $5, and an NSF check for $300. Deposits in transit total $1,200;
outstanding checks are $575. The company’s bookkeeper erroneously recorded a
check received from a customer as a $152 check when it was actually a $125 check.
This created a book error of $27.
(1) What is the adjusted bank balance?
(2) What was the book balance of cash before the reconciliation?
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