ottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,367. The company’s bank statement as of December 31 shows an ending cash balance of $15,941. The following information was also available.Outstanding checks as of December 31 total $2,271.Included with the bank statement was a debit memo in the amount of $45 for service charges.Check Number 2519, listed with the canceled checks, was correctly drawn for $815 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $870.The December 31 cash receipts of $3,455 were placed in the bank’s night depository after banking hours and were not recorded on the December 31 bank statement.The bank deducted $1,252 for an NSF check from a customer deposited on December 10. Required:Prepare the bank reconciliation as of December 31.
Cottage Company deposits all cash receipts on the day they are received, and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,367. The company’s bank statement as of December 31 shows an ending cash balance of $15,941. The following information was also available.Outstanding checks as of December 31 total $2,271.Included with the bank statement was a debit memo in the amount of $45 for service charges.Check Number 2519, listed with the canceled checks, was correctly drawn for $815 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $870.The December 31 cash receipts of $3,455 were placed in the bank’s night depository after banking hours and were not recorded on the December 31 bank statement.The bank deducted $1,252 for an NSF check from a customer deposited on December 10. Required:Prepare the bank reconciliation as of December 31.
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