The balance in Happ Inc.'s general ledger Cash account was $71,580 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $63.780. Reconciling items included deposits in transit, $6,200; bank service charges, $120; NSF check written by a customer and returned with the bank statement, $2,850; outstanding checks, $1,280; and Interest credited to the account during September but not recorded on the company's books, $90. Required: a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ Inc. at September 30. (Use amounts with + for increases and amounts with - for decreases.) Assets Cash Accounts receivable 63 2.850 Balance Sheet Liabilities + Stockholders' Equity 4 Net income Revenues Interest revenue Income Statement Expenses 90 Miscellaneous expense (120)

The balance in Happ Inc.'s general ledger Cash account was $71,580 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $63.780. Reconciling items included deposits in transit, $6,200; bank service charges, $120; NSF check written by a customer and returned with the bank statement, $2,850; outstanding checks, $1,280; and Interest credited to the account during September but not recorded on the company's books, $90. Required: a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ Inc. at September 30. (Use amounts with + for increases and amounts with - for decreases.) Assets Cash Accounts receivable 63 2.850 Balance Sheet Liabilities + Stockholders' Equity 4 Net income Revenues Interest revenue Income Statement Expenses 90 Miscellaneous expense (120)

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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