A local company received its bank statement dated June 30, 2022, and reconciled its statement balance to June 30, 2022, balance in its cash account (balance $5,800). This bank reconciliation recognized the following items: 1) Deposits in transit $3,100 2) Outstanding cheques $4,000 3) Bank service charges $100 4) An NSF cheque in the amount of $700 5) It was found that a cheque in the amount of $560 was incorrectly recorded as $650. a) What was the balance in the local company's cash account before the bank reconciliation was completed? b) What was the balance shown on the bank statement before recognizing any of the preceding items (1-5)?
A local company received its bank statement dated June 30, 2022, and reconciled its statement balance to June 30, 2022, balance in its cash account (balance $5,800). This bank reconciliation recognized the following items: 1) Deposits in transit $3,100 2) Outstanding cheques $4,000 3) Bank service charges $100 4) An NSF cheque in the amount of $700 5) It was found that a cheque in the amount of $560 was incorrectly recorded as $650. a) What was the balance in the local company's cash account before the bank reconciliation was completed? b) What was the balance shown on the bank statement before recognizing any of the preceding items (1-5)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A local company received its bank statement dated June 30, 2022, and
reconciled its statement balance to June 30, 2022, balance in its cash
account (balance $5,800). This bank reconciliation recognized the
following items:
1) Deposits in transit $3,100
2) Outstanding cheques $4,000
3) Bank service charges $100
4) An NSF cheque in the amount of $700
5) It was found that a cheque in the amount of $560 was incorrectly
recorded as $650.
a) What was the balance in the local company's cash account before
the bank reconciliation was completed?
b) What was the balance shown on the bank statement before
recognizing any of the preceding items (1-5)?
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