Arthur's Men's Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement: The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned. Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank. A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement. The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98. Included in the bank statement was a bank debit memo for service charges, $29. A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest.
Arthur's Men's Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement: The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned. Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank. A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement. The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98. Included in the bank statement was a bank debit memo for service charges, $29. A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Arthur's Men's Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement:
- The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned.
- Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank.
- A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement.
- The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98.
- Included in the bank statement was a bank debit memo for service charges, $29.
- A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education