Question: Marble company provides the following accounting information • On September 30, the statement from Abu Dhabi Islamic bank showed a balance of $6.613. • Bank charge for maintaining the account $55. • The bank incorrectly charged $500 against Marble company which should have been charged to Mars Company. • On September 30, Marble company had a cash balance per books of $7,882. • On September 30, the bank returned an NSF check from a customer for $250. • Deposits in transit at September 30 totaled $2,000 and outstanding checks were $600 • Marble company journalized and posted a cash receipt from Mr. Omar, customer, as $81. The bank accurately reported it at $18. • $1,199 of a note receivable was collected by the banks in September. The bank had credited S 1,199 to Marble company less a collection fee of $200. However, Marble company was not aware about these amounts. Required: (a) Prepare a bank reconciliation for September 30. (b) As the company accountant, the management of Marble company asks you explain the importance of establishing a bank account and preparing the bank reconciliation.
Question: Marble company provides the following accounting information • On September 30, the statement from Abu Dhabi Islamic bank showed a balance of $6.613. • Bank charge for maintaining the account $55. • The bank incorrectly charged $500 against Marble company which should have been charged to Mars Company. • On September 30, Marble company had a cash balance per books of $7,882. • On September 30, the bank returned an NSF check from a customer for $250. • Deposits in transit at September 30 totaled $2,000 and outstanding checks were $600 • Marble company journalized and posted a cash receipt from Mr. Omar, customer, as $81. The bank accurately reported it at $18. • $1,199 of a note receivable was collected by the banks in September. The bank had credited S 1,199 to Marble company less a collection fee of $200. However, Marble company was not aware about these amounts. Required: (a) Prepare a bank reconciliation for September 30. (b) As the company accountant, the management of Marble company asks you explain the importance of establishing a bank account and preparing the bank reconciliation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question:
Marble company provides the following accounting information
• On September 30, the statement from Abu Dhabi Islamic bank showed a balance of $6.613.
• Bank charge for maintaining the account $55.
• The bank incorrectly charged $500 against Marble company which should have been charged to Mars Company.
• On September 30, Marble company had a cash balance per books of $7,882.
• On September 30, the bank returned an NSF check from a customer for $250.
• Deposits in transit at September 30 totaled $2,000 and outstanding checks were $600
• Marble company journalized and posted a cash receipt from Mr. Omar, customer, as $81. The bank accurately reported it at $18.
• $1,199 of a note receivable was collected by the banks in September. The bank had credited S 1,199 to Marble company less a collection fee of $200. However, Marble company was not aware about these amounts.
Required:
(a) Prepare a bank reconciliation for September 30. (b) As the company accountant, the management of Marble company asks you explain the importance of establishing a bank account and preparing the bank reconciliation.
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