As of June 30, Year 1, the bank statement showed an ending balance of $18,181. The unadjusted Cash account balance was $17,028.The following information is available:1. Deposit in transit, $2,795.2. Credit memo in bank statement for interest earned in June: $14.3. Outstanding check: $3,946.4. Debit memo for service charge: $12.Required:Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information.Note: Negative amounts should be indicated with minus sign.Bank ReconciliationUnadjusted bank balance 6/30/Year 1True cash balance 6/30/Year 1Unadjusted book balance 6/30/Year 1True cash balance 6/30/Year 1$$$18,18118,18140

Bank reconciliation is the process of comparing the bank statement provided by the bank with the…

Answered: Required: Determine the true cash…

Required: Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information. Note: Negative amounts should be indicated with minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

As of June 30, Year 1, the bank statement showed an ending balance of $18,181. The unadjusted Cash account balance was $17,028.
The following information is available:
1. Deposit in transit, $2,795.
2. Credit memo in bank statement for interest earned in June: $14.
3. Outstanding check: $3,946.
4. Debit memo for service charge: $12.
Required:
Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information.
Note: Negative amounts should be indicated with minus sign.
Bank Reconciliation
Unadjusted bank balance 6/30/Year 1
True cash balance 6/30/Year 1
Unadjusted book balance 6/30/Year 1
True cash balance 6/30/Year 1
$
$
$
18,181
18,181
4
0

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