Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services.
Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Organic Food Company's Cash account shows a $7,500
debit balance and its bank statement shows $6,560 on
deposit at the close of business on August 31.
a. August 31 cash receipts of $3,240 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 $320 NSF check from a
customer; the company has not yet recorded this NSF
check.
c. Outstanding checks as of August 31 total $3,120.
d. In reviewing the bank statement, an $280 check written
by Organic Fruits was mistakenly drawn against Organic
Food's account.
e. The August 31 bank statement lists $220 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
Bank Reconciliation
August 31
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
Adjusted bank balance
Adjusted book balance
![g information applies to the questions
low.]
d Company's Cash account shows a $7,500
e and its bank statement shows $6,560 on
e close of business on August 31.
cash receipts of $3,240 were placed in the
ht depository after banking hours and were not
on the August 31 bank statement.
statement shows a $320 NSF check from a
the company has not yet recorded this NSF
ng checks as of August 31 total $3,120.
ng the bank statement, an $280 check written
c Fruits was mistakenly drawn against Organic
count.
st 31 bank statement lists $220 in bank service
he company has not yet recorded the cost of
rices.
reconciliation using the above information.
ORGANIC FOOD COMPANY
Bank Reconciliation
August 31
ce
Book balance
Add:
Deduct:
Adjusted book balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F324640e1-23f3-4173-967e-0be7ca979ee5%2F7d86f377-8d20-435c-9b5f-b4e7b7cb79ff%2Fw12qftc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:g information applies to the questions
low.]
d Company's Cash account shows a $7,500
e and its bank statement shows $6,560 on
e close of business on August 31.
cash receipts of $3,240 were placed in the
ht depository after banking hours and were not
on the August 31 bank statement.
statement shows a $320 NSF check from a
the company has not yet recorded this NSF
ng checks as of August 31 total $3,120.
ng the bank statement, an $280 check written
c Fruits was mistakenly drawn against Organic
count.
st 31 bank statement lists $220 in bank service
he company has not yet recorded the cost of
rices.
reconciliation using the above information.
ORGANIC FOOD COMPANY
Bank Reconciliation
August 31
ce
Book balance
Add:
Deduct:
Adjusted book balance
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