At the end of September 2021, Bigelow’s accounting records show a cash balance of $5,000. The September bank statement reports a cash balance of $3,900. After investigation, there was an NSF check of $1,300, service fee of $200, interest earned of $70, outstanding checks of $1,900, and a deposit in transit of $1,600. A check to Ameren correctly cleared the bank for $220 but was incorrectly recorded by Bigelow as $250. Complete a bank reconciliation and the entries for the Bigelow Company.
At the end of September 2021, Bigelow’s accounting records show a cash balance of $5,000. The September bank statement reports a cash balance of $3,900. After investigation, there was an NSF check of $1,300, service fee of $200, interest earned of $70, outstanding checks of $1,900, and a deposit in transit of $1,600. A check to Ameren correctly cleared the bank for $220 but was incorrectly recorded by Bigelow as $250. Complete a bank reconciliation and the entries for the Bigelow Company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of September 2021, Bigelow’s accounting records show a cash balance of $5,000. The September bank statement reports a cash balance of $3,900. After investigation, there was an NSF check of $1,300, service fee of $200, interest earned of $70, outstanding checks of $1,900, and a deposit in transit of $1,600. A check to Ameren correctly cleared the bank for $220 but was incorrectly recorded by Bigelow as $250.
Complete a bank reconciliation and the entries for the Bigelow Company.
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