bank reconciliation

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company general ledger shows a checking account balance of $22,830 on July 31, Year 1. The July cash receipts of $1,745, included
in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The
bank statement dated July 31 shows bank service fees of $41. The bank processes all checks written by the company by July 31 and
lists them on the bank statement, except for one check totaling $1,320. The bank statement shows a balance of $22,364 on July 31.
Required:
1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, Year 1. (Amounts to be deducted should be
indicated with a minus sign.)
Transcribed Image Text:A company general ledger shows a checking account balance of $22,830 on July 31, Year 1. The July cash receipts of $1,745, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $41. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,320. The bank statement shows a balance of $22,364 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, Year 1. (Amounts to be deducted should be indicated with a minus sign.)
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