Exercise 4-10 (Algo) Calculate the balance of cash using a bank reconciliation (LO4-5) On August 31, 2024, the general ledger of Knifepoint Cutlery shows a balance for cash of $7,914. Cash receipts yet to be deposited into the checking account total $3,325. The company's balance of cash does not reflect a debit card payment for the purchase of postage expense ($83) or an electronic funds transfer for rent expense ($1,395). The bank statement also revealed the company recorded a debit card transaction for supplies of $408, but the actual amount was $508. These amounts are included in the balance of cash of $3,011 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation KNIFEPOINT CUTLERY Bank Reconciliation August 31, 2024 Company's Cash Balance Per general ledger Company balance per reconciliation
Exercise 4-10 (Algo) Calculate the balance of cash using a bank reconciliation (LO4-5) On August 31, 2024, the general ledger of Knifepoint Cutlery shows a balance for cash of $7,914. Cash receipts yet to be deposited into the checking account total $3,325. The company's balance of cash does not reflect a debit card payment for the purchase of postage expense ($83) or an electronic funds transfer for rent expense ($1,395). The bank statement also revealed the company recorded a debit card transaction for supplies of $408, but the actual amount was $508. These amounts are included in the balance of cash of $3,011 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per bank statement Bank balance per reconciliation KNIFEPOINT CUTLERY Bank Reconciliation August 31, 2024 Company's Cash Balance Per general ledger Company balance per reconciliation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 4-10 (Algo) Calculate the balance of cash using a bank reconciliation (LO4-5)
On August 31, 2024, the general ledger of Knifepoint Cutlery shows a balance for cash of $7,914. Cash receipts yet to be deposited
into the checking account total $3,325. The company's balance of cash does not reflect a debit card payment for the purchase of
postage expense ($83) or an electronic funds transfer for rent expense ($1,395). The bank statement also revealed the company
recorded a debit card transaction for supplies of $408, but the actual amount was $508. These amounts are included in the balance of
cash of $3,011 reported by the bank as of the end of August.
Required:
1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024.
2. Record the necessary entry(ies) to adjust the balance for cash.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2024. (Amounts to be deducted
should be indicated with a minus sign.)
Bank's Cash Balance
Per bank statement
Bank balance per reconciliation
KNIFEPOINT CUTLERY
Bank Reconciliation
August 31, 2024
Company's Cash Balance
Per general ledger
Company balance per reconciliation
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