ness on December 31, its Cash account shows a debit balance of $18,36 ws an ending cash balance of $15,941. The following information was als Outstanding checks as of December 31 total $2,271. Included with the bank statement was a debit memo in the amount of : Check Number 2519, listed with the canceled checks, was correctly dr The company mistakenly recorded it with a debit to Utilities Expense a The December 31 cash receipts of $3,455 were placed in the bank's n on the December 31 bank statement. The bank deducted $1,252 for an NSF check from a customer deposite
ness on December 31, its Cash account shows a debit balance of $18,36 ws an ending cash balance of $15,941. The following information was als Outstanding checks as of December 31 total $2,271. Included with the bank statement was a debit memo in the amount of : Check Number 2519, listed with the canceled checks, was correctly dr The company mistakenly recorded it with a debit to Utilities Expense a The December 31 cash receipts of $3,455 were placed in the bank's n on the December 31 bank statement. The bank deducted $1,252 for an NSF check from a customer deposite
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Cottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of
business on December 31, its Cash account shows a debit balance of $18,367. The company's bank statement as of December 31
shows an ending cash balance of $15,941. The following information was also available.
Outstanding checks as of December 31 total $2,271.
• Included with the bank statement was a debit memo in the amount of $45 for service charges.
• Check Number 2519, listed with the canceled checks, was correctly drawn for $815 in payment of a utility bill on December 16.
The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $870.
• The December 31 cash receipts of $3,455 were placed in the bank's night depository after banking hours and were not recorded
on the December 31 bank statement.
• The bank deducted $1,252 for an NSF check from a customer deposited on December 10.
Required:
Prepare the bank reconciliation as of December 31.
Cottage Company
Bank Reconciliation
At December 31
Updates to Bank Statement
Updates to Company's Books
Ending Cash Balance per Bank Statement
Ending Cash Balance per Books
Additions:
Additions:
$
$
$
$
Deductions:
Deductions:
$
$
Up-to-date ending cash balance
Up-to-date ending cash balance
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