Finac Company deposits all cash receipts on the day when they are received and it makes all cashpayments by check. At the close of business on June 30, its Cash account shows an $12,820 debitbalance. Finac Company's June 30 bank statement shows $13,483 on deposit in the bank.a. Outstanding checks as of June 30 total $3,002.b. The June 30 bank statement lists a $65 bank service charge.c. Check No. 919, listed with the canceled checks, was correctly drawn for $389 in payment of autility bill on June 15. Finac Company mistakenly recorded it with a debit to Utilities Expenseand a credit to Cash in the amount of $398.d. The June 30 cash receipts of $2,283 were placed in the bank's night depository after bankinghours and were not recorded on the June 30 bank statement.A) Prepare a bank reconciliation for Finac Company using the above informationB) Journalize any transactions required from the bank reconciliation.

The financial statement being prepared by the management or accountant after receiving the bank…

Answered: A) Prepare a bank reconciliation for…

A) Prepare a bank reconciliation for Finac Company using the above information B) Journalize any transactions required from the bank reconciliation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Finac Company deposits all cash receipts on the day when they are received and it makes all cash
payments by check. At the close of business on June 30, its Cash account shows an $12,820 debit
balance. Finac Company's June 30 bank statement shows $13,483 on deposit in the bank.
a. Outstanding checks as of June 30 total $3,002.
b. The June 30 bank statement lists a $65 bank service charge.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $389 in payment of a
utility bill on June 15. Finac Company mistakenly recorded it with a debit to Utilities Expense
and a credit to Cash in the amount of $398.
d. The June 30 cash receipts of $2,283 were placed in the bank's night depository after banking
hours and were not recorded on the June 30 bank statement.
A) Prepare a bank reconciliation for Finac Company using the above information
B) Journalize any transactions required from the bank reconciliation.

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