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 $15,870 Outstanding checks 960 Customer's NSF check returned by the bank 190 Interest earned on checking account 120 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 $350; the bank recorded the amount correctly as $530 Required: What amount will Garrison report as its adjusted cash balance at May 317

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bank Reconciliation
Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconcillation 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
Outstanding checks
Customer's NSF check returned by the bank
Interest earned on checking account
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 $350; the bank recorded the amount correctly as $530.
Required:
What amount will Garrison report as its adjusted cash balance at May 31?
$15,870
960
190
120
Transcribed Image Text:Bank Reconciliation Garrison Corporation was closing its books on May 31. Garrison's accountant prepared a bank reconcillation 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 Outstanding checks Customer's NSF check returned by the bank Interest earned on checking account 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 $350; the bank recorded the amount correctly as $530. Required: What amount will Garrison report as its adjusted cash balance at May 31? $15,870 960 190 120
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