balance of $72,900. The bank etntement, however, showed a balance of SE7,40 a.At September 30, the Cash account of Canvasback, a sole proprietorship, showeda |the same date. The only reconciling items consisted of a $4,800 deposit in transit, a |344PART THREE I ACCOUNTING FOR ASSETSEXERCISE 7-9balance of $72,900. The boank etatement, huwever, showed a balance of saAnalysis ofReconcliinghermscredit for interest earned of $200, and 30 outstanding checke.a Compute the amount of casn which should appear in the company's bale-.sheet at September 30.b Compute the total amount of the outstanding checks.INSTRUCTIONS

At September 30, the Cash account of Canvasback, a sole proprietorship, showeda balance of $72,900. The bank stntement, however, showed a balance of 8E7,410 a. the same date. The only reconciling items consisted of a $4,800 deposit in transit, a credit for interest earned of $200, and 30 outstanding checks. a Compute the amount of casin which should appear in the company's bala-. sheet at September 30. b Compute the total amount of the outstanding checks.

At September 30, the Cash account of Canvasback, a sole proprietorship, showeda balance of $72,900. The bank stntement, however, showed a balance of 8E7,410 a. the same date. The only reconciling items consisted of a $4,800 deposit in transit, a credit for interest earned of $200, and 30 outstanding checks. a Compute the amount of casin which should appear in the company's bala-. sheet at September 30. b Compute the total amount of the outstanding checks.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

As of June 30, Year 1, the bank statement showed an ending balance of $18,181. The unadjusted Cash account balance was $17,028. The following information is available: 1. Deposit in transit, $2,795. 2. Credit memo in bank statement for interest earned in June: $14. 3. Outstanding check: $3,946. 4. Debit memo for service charge: $12. Required: Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information. Note: Negative amounts should be indicated with minus sign. Bank Reconciliation Unadjusted bank balance 6/30/Year 1 True cash balance 6/30/Year 1 Unadjusted book balance 6/30/Year 1 True cash balance 6/30/Year 1 $ $ $ 18,181 18,181 4 0
The Cash account of ReeseCorporation had a balance of $3,540 at October 31, 2018. Included were outstanding checkstotaling $1,800 and an October 31 deposit of $300 that did not appear on the bank statement.The bank statement, which came from Turnstone State Bank, listed an October 31 balance of$5,570. Included in the bank balance was an October 30 collection of $600 on account froma customer who pays the bank directly. The bank statement also showed a $30 service charge,$10 of interest revenue that Reese earned on its bank balance, and an NSF check for $50.Prepare a bank reconciliation to determine how much cash Reese actually had at October 31.
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $17,740. Cash balance according to the bank statement at August 31, $18,960. Checks outstanding, $3,600. Deposit in transit not recorded by bank, $2,890. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $30. Question Content Area a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co.Bank ReconciliationAugust 31, 20Y6 Line Item Description Amount Cash balance according to bank statement $Cash balance according to bank statement - Select - - Select - Adjusted balance $Adjusted balance Cash balance according to company's records $Cash balance according to company's records - Select - - Select - Adjusted balance $Adjusted balance…
Using the following information, prepare a bank reconciliation for Cole Co. for May 31 of the current year: (a) The bank statement balance is $3,012. (b) The cash account balance is $3,165. (c) Outstanding checks amounted to $590. (d) Deposits in transit are $704. (e) The bank service charge is $30. (f) A check for $76 for supplies was recorded as $67 in the ledger.
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $85,920. The bank statement indicated a balance of $127,910 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $32,540. B. A deposit of $18,540, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $29,425 on a $27,500 note, including interest of $1,925. D. A check for $1,350 returned with the statement had been incorrectly recorded by Pala Medical Co. as $135. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check drawn for $570 had been erroneously charged by the bank as $750. F. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact…
The April 30 bank statement for Shopify Corporation shows an ending balance of $34.351. The unadjusted cash account balance was $28,250. The accountant for Shopify gathered the following information: 1. There was a deposit in transit for $4,240. 2. The bank statement reports a service charge of $39. 3. A credit memo included in the bank statement shows interest earned of $95. 4. Outstanding checks totaled $10,935 5. The bank statement included a $650 NSF check deposited in April. What is the true cash balance as of April 30? Multiple Choice O s27656 $27,006 $31B01
Vegas company's unadjusted cash balance at Oct 31 is $5,400. The following information is available for bank reconciliation: - outstanding checks, $600 - deposit in transit, $450 - bank service charges, $90 - bank had collected an account receivable for company, $1000 - bank statement included an NSF check written by one of company's customers for $600. What was the adjusted book balance at Oct 31? A, $5,400 B, $5,710 C, $6,910 D, $5,490
Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $20,400. The bank reconciliation for the period showed an adjustment for a deposit in transit of $2,450, outstanding checks of $3,900, an NSF check of $2,600, bank service charges of $125 and the EFT from a customer in payment of the customer's account of $3,400. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31 $27,900. Cash balance according to the bank statement at July 31, $29,040. Checks outstanding, $5,660. Deposit in transit, not recorded by bank, $4,550. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 14.
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035. The bank statement indicated a balance of $181,965 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $16,445. B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $31,800 on a $30,000 note, including interest of $1,800. D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check drawn for $170 had been erroneously charged by the bank as $710. F. Bank service charges for June amounted to $75. 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer…
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $14,740. Cash balance according to the bank statement at August 31, $15,650. Checks outstanding, $2,990. Deposit in transit, not recorded by bank, $2,400. A check for $480 in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $40. Question Content Area a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $27,010. Cash balance according to the bank statement at July 31, $28,120. Checks outstanding, $5,480. Deposit in transit, not recorded by bank, $4,400. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $60. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 b. July 31