An accounting clerk for Westwind Co. prepared the following bank reconciliation: WESTWIND CO. Bank Reconciliation August 31, 20Y6 Cash balance according to company's records $6,800 Add: Outstanding checks $4,190 Error by Westwind Co. in recording Check No. 01-115 as $830 instead of $380 450 Note for $7,500 collected by bank, including interest 8,100 12,740 $19,540 Deduct: Deposit in transit on August 31 $2,175 Bank service charges 40 (2,215) Cash balance according to bank statement $17,325 a. From the bank reconciliation data, prepare a new bank reconciliation for Westwind Co., using the format shown in Exhibit 10
An accounting clerk for Westwind Co. prepared the following bank reconciliation: WESTWIND CO. Bank Reconciliation August 31, 20Y6 Cash balance according to company's records $6,800 Add: Outstanding checks $4,190 Error by Westwind Co. in recording Check No. 01-115 as $830 instead of $380 450 Note for $7,500 collected by bank, including interest 8,100 12,740 $19,540 Deduct: Deposit in transit on August 31 $2,175 Bank service charges 40 (2,215) Cash balance according to bank statement $17,325 a. From the bank reconciliation data, prepare a new bank reconciliation for Westwind Co., using the format shown in Exhibit 10
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Internal Control And Cash
Section: Chapter Questions
Problem 21E
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An accounting clerk for Westwind Co. prepared the following bank reconciliation:
| WESTWIND CO. Bank Reconciliation August 31, 20Y6 |
|||
| Cash balance according to company's records | $6,800 | ||
| Add: Outstanding checks | $4,190 | ||
| Error by Westwind Co. in recording Check | |||
| No. 01-115 as $830 instead of $380 | 450 | ||
| Note for $7,500 collected by bank, including interest | 8,100 | 12,740 | |
| $19,540 | |||
| Deduct: Deposit in transit on August 31 | $2,175 | ||
| Bank service charges | 40 | (2,215) | |
| Cash balance according to bank statement | $17,325 |
a. From the bank reconciliation data, prepare a new bank reconciliation for Westwind Co., using the format shown in Exhibit 10.
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