On December 31, Reed Company's bank statement had a balance of $26,500. Analysis of the bank statement and comparison of the statement and records indicated the following: Deposits in transit at the end of December Outstanding checks at the end of December Bank service charge Customer's returned check, NSF Bank collection of note on our behalf Interest received on note In reviewing the records, Reed Company also discovered the following error: A check for $190 in legal expense was incorrectly recorded on the books as $910. Required: Compute the adjusted balance of Cash per bank statement. $ 14,685 6,310 5 1,240 4,610 230
On December 31, Reed Company's bank statement had a balance of $26,500. Analysis of the bank statement and comparison of the statement and records indicated the following: Deposits in transit at the end of December Outstanding checks at the end of December Bank service charge Customer's returned check, NSF Bank collection of note on our behalf Interest received on note In reviewing the records, Reed Company also discovered the following error: A check for $190 in legal expense was incorrectly recorded on the books as $910. Required: Compute the adjusted balance of Cash per bank statement. $ 14,685 6,310 5 1,240 4,610 230
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Introduction
The bank reconciliation statement is prepared to equate the balances of the cash book and pass book with various adjustments. The adjustments for bank reconciliation statement include outstanding checks. deposit in transit, outstanding checks, etc.
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