Bank Reconciliation Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconciliation as of May 31 and has found the following possible reconciling items between its book balance and its cash balance per the bank: Garrison's book balance $76,940 Outstanding checks 550 Customer’s NSF check returned by the bank 175 Interest earned on checking account 55 In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer’s check: the amount was recorded in cash receipts as $480; the bank recorded the amount correctly as $840. Required: What amount will Garrison report as its adjusted cash balance at May 31?
Bank Reconciliation Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconciliation as of May 31 and has found the following possible reconciling items between its book balance and its cash balance per the bank: Garrison's book balance $76,940 Outstanding checks 550 Customer’s NSF check returned by the bank 175 Interest earned on checking account 55 In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer’s check: the amount was recorded in cash receipts as $480; the bank recorded the amount correctly as $840. Required: What amount will Garrison report as its adjusted cash balance at May 31?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bank Reconciliation
Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconciliation as of May 31 and has found the following possible reconciling items between its book balance and its cash balance per the bank:
| Garrison's book balance | $76,940 |
| Outstanding checks | 550 |
| Customer’s NSF check returned by the bank | 175 |
| Interest earned on checking account | 55 |
In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer’s check: the amount was recorded in cash receipts as $480; the bank recorded the amount correctly as $840.
Required:
What amount will Garrison report as its adjusted cash balance at May 31?
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