At March 31, Band-Aid Co. had a book balance in its cash account of$5,600.At the end of March, the company determined that it had outstanding checksof $900, deposits in transit of $900, a bank service charge of $20, and anNSF check from a customer for $280.The true cash balance at March 31 is:A. $5,300B. $5,320C. $5,600D. $4,700

To determine the true cash balance, we need to adjust the book balance for the items that affect the…

Answered: At March 31, Band-Aid Co. had a book…

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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The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998. a. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b. Deposits in transit not recorded by bank, $778. c. Bank debit memo for service charges, $40. d. Bank credit memo for note collected by bank, $23,985 plus $885 interest. e. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. f. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. Record the entry that increases cash first. If an amount box does not require an entry, leave it blank.
5 Brangelina Adoption Agency's general ledger shows a cash balance of $11,663. The balance of cash in the March- end bank statement is $7,345. A review of the bank statement reveals the following additional information: deposits outstanding of $2,803, bank service fees of $85, and unrecorded electronic funds transfer for utilities of $1,430. Calculate the correct balance of cash at the end of March. (Amounts to be deducted should be indicated with a minus sign.) Bank balance Deposits outstanding Cash balance per reconciliation Company balance Service fees EFT for utilities Cash balance per reconciliation
Using the following information: The bank statement balance is $3,718. The cash account balance is $4,086. Outstanding checks amounted to $866. Deposits in transit are $1,177. The bank service charge is $48. A check for $78 for supplies was recorded as $69 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31.
The following information is available for the Savvy Company for the month of June. a. On June 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $17,202. b. The company's bank statement shows a balance on June 30 of $19,279. c. Outstanding checks at June 30 total $2,984. d. The bank collected $770 on a note receivable that is not yet recorded by Savvy Company. e. A $67 NSF check from a customer, J. Maroon is shown on the bank statement but not yet recorded by the company. f. A deposit placed in the bank's night depository on June 30 totaling $1,675 did not appear on the bank statement. g. Check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540. h. Included with the bank statement was a bank service charge in the amount of $25. It has not been recorded on the company's books. 1. Prepare the June bank reconciliation for the Savvy Company. 2. Prepare the…
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Peterson Company's general ledger shows a cash balance of $7,420 on May 31. May cash receipts of $1,220, included in the general ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement dated May 31 shows an NSF check from a customer for $120 and a service fee of $70. The bank processes all checks written by the company by May 31 and lists them on the bank statement, except for one check totaling $1,900. The bank statement shows a balance of $7,910 on May 31. Required: Prepare a bank reconciliation to calculate the correct balance of cash on May 31. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement PETERSON COMPANY Bank Reconciliation May 31 Company's Cash Balance Per general ledger Bank balance per reconciliation $ 0 Company balance per reconciliation $ 0
A) $ 2,667 10) Counte Company's cash balance at the end of the month was $ 5,500. After comparing the company's records with the monthly bank statement, Counte's accountant identified the following reconciling items: outstanding checks, $ 900; deposits in transit, $ 600; bank service charge, $ 20; NSF check, $ 200. What is the adjusted bank balance? A) $5,280 B) $ 5,580 C) $4,980 D) The adjusted bank balance cannot be determined.
The following information is available for the Savvy Company for the month of June.a. On June 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $17,202.b. The company's bank statement shows a balance on June 30 of $19,279.c. Outstanding checks at June 30 total $2,984.d. The bank collected $770 on a note receivable that is not yet recorded by Savvy Company.e. A $67 NSF check from a customer, J. Maroon is shown on the bank statement but not yet recorded by the company.f. A deposit placed in the bank's night depository on June 30 totaling $1,675 did not appear on the bank statement.g. Check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.h. Included with the bank statement was a bank service charge in the amount of $25 . It has not been recorded on the company's books.1. Prepare the June bank reconciliation for the Savvy Company.2. Prepare the journal…

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