Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August 1300 Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.

Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August 1300 Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

▸
Crane Inc.'s bank statement from Western Bank at August 31, 2025, shows the following information.
Balance, August 1
August deposits
Cheques cleared in August
Bank credit for interest earned not yet accrued
Bank debit for safety deposit box fee
Bank service charge
Balance, August 31
0
$13,448
59,860
(56,316)
45
(25)
(50)
$16,962
A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash
receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals
that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of
$3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable
to a supplier on account that cleared the bank in August was journalized and posted for $40.

Calculate the amount of outstanding cheques at August 31. (Hint: You need to correct disbursements for any cheque error.)
Outstanding cheques
$
3250

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