Refer to the information given below: a. The August 31 balance shown on the bank statement is $9,050. b. There is a deposit in transit of $1,300 at August 31. c. Outstanding checks at August 31 totaled $1,620. d. Interest credited to the account during August but not recorded on the company's books e. A bank charge of $44 for checks was made to the account during August. Although the c charge, the amount was not known until the bank statement arrived. the process of reviewing the canceled checks it was determined that a check issued

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Refer to the information given below:
a. The August 31 balance shown on the bank statement is $9,050.
b. There is a deposit in transit of $1,300 at August 31.
c. Outstanding checks at August 31 totaled $1,620.
d. Interest credited to the account during August but not recorded on the company's books amounted to $68.
e. A bank charge of $44 for checks was made to the account during August. Although the company was expecting a
charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of
accounts payable of $142 had been recorded as a disbursement of $412.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436.
Required:
Prepare a bank reconciliation as of August 31 from the above information.
Transcribed Image Text:Refer to the information given below: a. The August 31 balance shown on the bank statement is $9,050. b. There is a deposit in transit of $1,300 at August 31. c. Outstanding checks at August 31 totaled $1,620. d. Interest credited to the account during August but not recorded on the company's books amounted to $68. e. A bank charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412. g. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436. Required: Prepare a bank reconciliation as of August 31 from the above information.
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