Organic Food Company's Cash account shows a $7,500debit balance and its bank statement shows $6,560 ondeposit at the close of business on August 31.a. August 31 cash receipts of $3,240 were placed in thebank's night depository after banking hours and were notrecorded on the August 31 bank statement.b. The bank statement shows a $320 NSF check from acustomer; the company has not yet recorded this NSFcheck.c. Outstanding checks as of August 31 total $3,120.d. In reviewing the bank statement, an $280 check writtenby Organic Fruits was mistakenly drawn against OrganicFood's account.e. The August 31 bank statement lists $220 in bank servicecharges; the company has not yet recorded the cost ofthese services.Prepare a bank reconciliation using the above information.ORGANIC FOOD COMPANYBank ReconciliationAugust 31Bank statement balanceBook balanceAdd:Add:Deduct:Deduct:Adjusted bank balanceAdjusted book balance g information applies to the questionslow.]d Company's Cash account shows a $7,500e and its bank statement shows $6,560 one close of business on August 31.cash receipts of $3,240 were placed in theht depository after banking hours and were noton the August 31 bank statement.statement shows a $320 NSF check from athe company has not yet recorded this NSFng checks as of August 31 total $3,120.ng the bank statement, an $280 check writtenc Fruits was mistakenly drawn against Organiccount.st 31 bank statement lists $220 in bank servicehe company has not yet recorded the cost ofrices.reconciliation using the above information.ORGANIC FOOD COMPANYBank ReconciliationAugust 31ceBook balanceAdd:Deduct:Adjusted book balance

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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