At the end of February, Williams Productions' accounting records reveal a balance for cash equal to $19,155. However, the balance of cash in the bank at the end of February is only $2,475. Williams is concerned and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: NSF checks Deposits outstanding Service fees $5,208 7,622 Checks outstanding $ 145 475 In addition, during February the company's accountant wrote a check to one of its suppliers for $120. The check was recorded correctly in the company's records for $120 but processed incorrectly by the bank for $1,200. Williams has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $3,100 was established during February. This amount was withdrawn from the checking account but not recorded. Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) WILLIAMS PRODUCTIONS

At the end of February, Williams Productions' accounting records reveal a balance for cash equal to $19,155. However, the balance of cash in the bank at the end of February is only $2,475. Williams is concerned and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: NSF checks Deposits outstanding Service fees $5,208 7,622 Checks outstanding $ 145 475 In addition, during February the company's accountant wrote a check to one of its suppliers for $120. The check was recorded correctly in the company's records for $120 but processed incorrectly by the bank for $1,200. Williams has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $3,100 was established during February. This amount was withdrawn from the checking account but not recorded. Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) WILLIAMS PRODUCTIONS

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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