Balance per the bank on May 31: $11,295.Deposits in transit not recorded by the bank: $2,410.Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply’s account: $600.The following checks written and recorded by Pro Beauty Supply were not included in the bank statement: 3013 $1553054 5903056 1,690 Note collected by the bank: $800.Service charge for collection of note: $18.The bookkeeper mistakenly recorded a check for $507 but the check was correctly written for May utilities in the amount of $597.Bank service charge in addition to the note collection fee: $50.Customer checks returned by the bank as NSF: $101. RequiredDetermine the amount of the unadjusted cash balance per Pro Beauty Supply’s books.

Introduction: Bank reconciliation statement: To find the difference between the Pass book and cash…

Answered: Balance per the bank on May 31:…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Balance per the bank on May 31: $11,295.
Deposits in transit not recorded by the bank: $2,410.
Bank error; check written by Best Beauty Supply was charged to Pro Beauty Supply’s account: $600.
The following checks written and recorded by Pro Beauty Supply were not included in the bank statement:

Note collected by the bank: $800.
Service charge for collection of note: $18.
The bookkeeper mistakenly recorded a check for $507 but the check was correctly written for May utilities in the amount of $597.
Bank service charge in addition to the note collection fee: $50.
Customer checks returned by the bank as NSF: $101.

Required
Determine the amount of the unadjusted cash balance per Pro Beauty Supply’s books.

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