Organic Food Company's Cash account shows a $7,200 debit balance and its bank statement shows $6,350 on depositat the close of business on August 31.August 31 cash receipts of $2,940 were placed in the bank's night depository after banking hours and were not recordedon the August 31 bank statement.The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check.Outstanding checks as of August 31 total $2,820.In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food'saccount.The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of theseservices.

Detailed explanation:A bank reconciliation is the process of comparing a company's internal records…

Answered: Organic Food Company's Cash account…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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Similar questions

Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.
The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?
Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31. August 31 cash receipts of $3,140 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check. Outstanding checks as of August 31 total $3,020. In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services. Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation.
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. 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. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. Outstanding checks as of August 31 total $2,820. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. 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 Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,140 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. Deduct b. The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,020. d. In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. Bank statement balance i Add: Adjusted bank balance ORGANIC FOOD COMPANY Bank Reconciliation August 31 $ 0 0 Book balance Add: Deduct: 0 0 Adjusted book balance $ 0 0 0 0
Wright Company's cash account shows a $30,500 debit balance and its bank statement shows $28,800 on deposit at the close of business on May 31. The May 31 bank statement lists $250 in bank service charges; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $7,100. May 31 cash receipts of $7,700 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $550 check written by Smith Company was mistakenly drawn against Wright’s account. The bank statement shows a $300 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information.
Organic Foods Co's cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at close of business on August 31. Prepare a bank reconciliation using the following information. a) August 31 cash receipts of $1,240 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 $120 NSF check from a customer; the company has not yet recorded this NSF check. c) Outstanding checks as of August 31 total $1,120. d) In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e) The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.
Nolan Company's cash account shows a $26,426 debit balance and its bank statement shows $25,694 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,907. b. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company's books as $89. d. June 30 cash receipts of $3,656 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. e. The bank statement included a $40 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information. Bank statement balance Add: Deduct: Adjusted bank balance NOLAN COMPANY Bank Reconciliation June 30 Book balance Add: Deduct: Adjusted book balance
Nolan Company's cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $2,801. b. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. c. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company's books as $89. d. June 30 cash receipts of $3,853 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. e. The bank statement included a $34 credit for interest earned on the company's cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information. NOLAN COMPANY Bank Reconciliation June 30 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
Liberty Company receives a bank statement dated April 30 that shows a balance of $4,722.68. Liberty’s checkbook balance, as of April 30, is $5,277.73. The bank has not processed check 566 for $35 or check 567 for $264. A $750 deposit made on April 30 does not appear on the bank statement. The bank statement shows a few items that Liberty is unaware of: check printing charges of $61.50 and interest earned of $11.45. Liberty recorded check 563 as $128, but the bank processed the check incorrectly as $182. Find the April 30 reconciled balance.
Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at the close of business on August 31. Prepare a bank reconciliation using the following information. a. August 31 cash receipts of $1,240 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 $120 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $1,120. d. In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. e. The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.
Iron Company receives a bank statement dated April 30 that shows a balance of $3,276.82. Iron’s checkbook balance, as of April 30, is $3,205.37. The bank has not processed check 892 for $45 or check 895 for $640. A $550 deposit made on April 30 does not appear on the bank statement. The bank statement shows a few items that Iron is unaware of: check printing charges of $65 and interest earned of $11.45. Iron recorded check 890 as $122, but the bank processed the check correctly as $132. Find the reconciled balance by completing the bank reconciliation:

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