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 $15,010. Cash balance according to the bank statement at July 31, $15,650. Checks outstanding, $3,050. Deposit in transit, not recorded by bank, $2,450. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $50. 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 $15,010. Cash balance according to the bank statement at July 31, $15,650. Checks outstanding, $3,050. Deposit in transit, not recorded by bank, $2,450. A check for $340 in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $50. 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)?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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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 $15,010.
- Cash balance according to the bank statement at July 31, $15,650.
- Checks outstanding, $3,050.
- Deposit in transit, not recorded by bank, $2,450.
- A check for $340 in payment of an account was erroneously recorded in the check register as $430.
- Bank debit memo for service charges, $50.
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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