The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company’s records at July 31, $32,110. Cash balance according to the bank statement at July 31, $31,350. Checks outstanding, $2,870. Deposit in transit, not recorded by bank, $4,150. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $20. Prepare a bank reconciliation, using the format shown in Exhibit 13. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? Must a bank reconciliation always balance (reconcile)?
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company’s records at July 31, $32,110. Cash balance according to the bank statement at July 31, $31,350. Checks outstanding, $2,870. Deposit in transit, not recorded by bank, $4,150. A check for $170 in payment of an account was erroneously recorded in the check register as $710. Bank debit memo for service charges, $20. Prepare a bank reconciliation, using the format shown in Exhibit 13. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? Must a bank reconciliation always balance (reconcile)?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:
- Cash balance according to the company’s records at July 31, $32,110.
- Cash balance according to the bank statement at July 31, $31,350.
- Checks outstanding, $2,870.
- Deposit in transit, not recorded by bank, $4,150.
- A check for $170 in payment of an account was erroneously recorded in the check register as $710.
- Bank debit memo for service charges, $20.
- Prepare a bank reconciliation, using the format shown in Exhibit 13.
- If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?
- Must a bank reconciliation always balance (reconcile)?
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