Oriole Rook Candies received a bank statement for the month of August 2014, which showed a balance per bank of $7,094. The company's cash account in the general ledger showed a balance of $6,364 at August 31. Other information that may be relevant in preparing a bank reconciliation for August follows: 1. 2. 3. 4. 5. 6. The bank returned a NSF check from a customer for $55. The company recorded cash receipts of $1,084 on August 31 but this amount does not appear on the bank statement. A check correctly written and paid by the bank for $1,076 was incorrectly recorded in the cash payments journal for $872. The check was a payment on account. Checks that were written in August but still had not been presented to the bank for payment at August 31 amounted to $558. The bank posted $1,540 to the company's account on August 31 representing an EFT payment from a customer that does not appear in the company's ledger. The bank included a $25 debit memorandum for service charges for the month of August.
Oriole Rook Candies received a bank statement for the month of August 2014, which showed a balance per bank of $7,094. The company's cash account in the general ledger showed a balance of $6,364 at August 31. Other information that may be relevant in preparing a bank reconciliation for August follows: 1. 2. 3. 4. 5. 6. The bank returned a NSF check from a customer for $55. The company recorded cash receipts of $1,084 on August 31 but this amount does not appear on the bank statement. A check correctly written and paid by the bank for $1,076 was incorrectly recorded in the cash payments journal for $872. The check was a payment on account. Checks that were written in August but still had not been presented to the bank for payment at August 31 amounted to $558. The bank posted $1,540 to the company's account on August 31 representing an EFT payment from a customer that does not appear in the company's ledger. The bank included a $25 debit memorandum for service charges for the month of August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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