Organic Food Co.'s cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of business on August 31. a. August 31 cash receipts of $2,940 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $2,820. d. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. ORGANIC FOOD co. Bank Reconciliation August 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance O Adjusted book balance %24
Organic Food Co.'s cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of business on August 31. a. August 31 cash receipts of $2,940 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $2,820. d. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. ORGANIC FOOD co. Bank Reconciliation August 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance O Adjusted book balance %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Organic Food Co's cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of
business on August 31.
a. August 31 cash receipts of $2,940 were placed in the bank's night depository after banking hours and were not recorded on the
August 31 bank statement.
b. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check.
c. Outstanding checks as of August 31 total $2,820.
d. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food's account.
e. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services.
Prepare a bank reconciliation using the above information.
ORGANIC FOOD CO.
Bank Reconciliation
August 31
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
Adjusted bank balance
0 Adjusted book balance
$
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