Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31 $27,370. Cash balance according to the bank statement at July 31, $28,980. Checks outstanding, $5,560. Deposit in transit, not recorded by bank, $4,460. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement $ Adjusted balance $ Cash balance according to company's records $ Adjusted balance $ b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? $ c. Must a bank reconciliation always balance (reconcile)
Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31 $27,370. Cash balance according to the bank statement at July 31, $28,980. Checks outstanding, $5,560. Deposit in transit, not recorded by bank, $4,460. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement $ Adjusted balance $ Cash balance according to company's records $ Adjusted balance $ b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? $ c. Must a bank reconciliation always balance (reconcile)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:
- Cash balance according to the company's records at July 31 $27,370.
- Cash balance according to the bank statement at July 31, $28,980.
- Checks outstanding, $5,560.
- Deposit in transit, not recorded by bank, $4,460.
- A check for $170 in payment of an account was erroneously recorded in the check register as $710.
- Bank debit memo for service charges, $30.
a. Prepare a bank reconciliation, using the format shown in Exhibit 14.
| Mathers Co. | |
| Bank Reconciliation | |
| July 31 | |
| Cash balance according to bank statement | $ |
| Adjusted balance | $ |
| Cash balance according to company's records | $ |
| Adjusted balance | $ |
b. If the
$
c. Must a bank reconciliation always balance (reconcile)?
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