Title: Bank Reconciliation for Scarlet Company: An Educational ExampleThe following information was available to the accountant of Scarlet Company when preparing the monthly bank reconciliation:- **Cash balance per bank statement:** $1,055- **Cash balance per books (prior to reconciliation):** $764- **Outstanding check #643:** $582- **Outstanding check #651:** $51- **Bank service charges:** $33- **Customer check returned by bank as NSF:** $60- **Deposits in transit:** $270- **Interest received from bank:** $21### Calculations for Bank Reconciliation:To reconcile the bank statement, adjustments must be made to both the balance per the bank statement and the balance per the books. 1. **Reconciliation for Cash Balance per Bank Statement:** - Start with the cash balance per bank statement: $1,055 - Subtract outstanding checks: $1,055 - $582 - $51 = $422 - Add deposits in transit: $422 + $270 = $6922. **Reconciliation for Cash Balance per Books:** - Start with the cash balance per books: $764 - Subtract bank service charges: $764 - $33 = $731 - Subtract customer check returned by bank as NSF: $731 - $60 = $671 - Add interest received from bank: $671 + $21 = $692Both reconciled balances (after adjustments) should now be equal:- **Adjusted Bank Balance:** $692- **Adjusted Book Balance:** $692### Question:After the completion of the reconciliation and adjustments to the accounting records, what amount of cash should appear on the balance sheet?### Answer Choices:- $249- $764- $752The correct answer is not explicitly given in the answer choices provided. Based on the reconciliation calculations, the cash amount that should appear on the balance sheet is:- **$692**### Graphical Explanation:In this example, there is no graphical content such as graphs or diagrams. Instead, we have a structured list of monetary values and corresponding operations to illustrate the reconciliation process systematically. ### Importance:Understanding how to perform a bank reconciliation is crucial for accurate accounting and financial reporting. It ensures that the company's cash records are consistent with the bank's records, thereby detecting and correcting any discrepancies.For more detailed step-by-step learning **Bank Reconciliation Example**Before reconciling its bank statement, Rollin Corporation's general ledger had a month-end balance in the cash account of $9,500. The bank reconciliation for the month contained the following items:- **Deposits in transit:** $920- **Outstanding checks:** $720- **Interest earned:** $20- **NSF check returned to bank:** $270- **Bank service charge:** $95Given the above information, what is the up-to-date ending cash balance Rollin should report at month-end?**Multiple Choice:**- $9,155- $8,580- $8,900- $9,755To calculate the up-to-date ending cash balance, we need to adjust the general ledger balance based on the provided items. **Steps to calculate:**1. Start with the general ledger balance of $9,500.2. Add deposits in transit of $920: $9,500 + $920 = $10,420.3. Subtract outstanding checks of $720: $10,420 - $720 = $9,700.4. Add interest earned of $20: $9,700 + $20 = $9,720.5. Subtract NSF check returned to bank of $270: $9,720 - $270 = $9,450.6. Subtract bank service charges of $95: $9,450 - $95 = $9,355.The correct up-to-date ending cash balance Rollin should report at month-end is $9,355. Note that this specific value is not included in the provided multiple-choice options, indicating a potential oversight in the details or options provided in the question.

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Help Save & Exit The following information was available to the accountant of Scarlet Company when preparing the monthly bank reconciliation: Cash balance per bank statement $ 1,055 Cash balance per books (prior to reconciliation) 764 Outstanding check #643 582 Outstanding check #651 51 Bank service charges 33 Customer check returned by bank as NSF 60 Deposits in transit 270 Interest received from bank 21 After the completion of the reconciliation and adjustments to the accounting records, what amount of cash should appear on the balance sheet? Multiple Choice $249 O O O $764 $752

Help Save & Exit The following information was available to the accountant of Scarlet Company when preparing the monthly bank reconciliation: Cash balance per bank statement $ 1,055 Cash balance per books (prior to reconciliation) 764 Outstanding check #643 582 Outstanding check #651 51 Bank service charges 33 Customer check returned by bank as NSF 60 Deposits in transit 270 Interest received from bank 21 After the completion of the reconciliation and adjustments to the accounting records, what amount of cash should appear on the balance sheet? Multiple Choice $249 O O O $764 $752

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 1COMP

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Kindly answer numbers 1-4.
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