Q2: Below information are: 1. At December 31, cash per company records was $17445; the cash per bank statement was$15981. 2. Debit memoranda accompanied the bank statement; services charges for the December $24 and a $600 check drawn by Michel marked NSF. 3. Cash receipts of $4353 on December 31 were not deposited until January 2. 4. Checks issued in December but were not included among the paid checks returned by the bank, no.520 for $978, no.521 for $2052 and no.522 for $483. Instructions: a) Prepared a bank reconciliation statement at December 31, 2020. b) Assume that the company normally is not required to pay if maintains minimum $1000 balance, and if the average balance for December had been $4500, why did it have to pay $24 service charges?
Q2: Below information are: 1. At December 31, cash per company records was $17445; the cash per bank statement was$15981. 2. Debit memoranda accompanied the bank statement; services charges for the December $24 and a $600 check drawn by Michel marked NSF. 3. Cash receipts of $4353 on December 31 were not deposited until January 2. 4. Checks issued in December but were not included among the paid checks returned by the bank, no.520 for $978, no.521 for $2052 and no.522 for $483. Instructions: a) Prepared a bank reconciliation statement at December 31, 2020. b) Assume that the company normally is not required to pay if maintains minimum $1000 balance, and if the average balance for December had been $4500, why did it have to pay $24 service charges?
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 4PA
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