The following information relates to the Cash account in the ledger of Lee Company. Balance September 1—$25,725; Cash deposited—$96,000. Balance September 30—$22,225; Checks written—$99,500. The September bank statement shows a balance of $24,635 on September 30 and the following memoranda. Credits Debits Collection of a $4,250 note plus interest $50 $4,300 NSF check: J. E. Hoover $735 Interest earned on checking account $40 Safety deposit box rent $75 At September 30, deposits in transit were $4,695, and outstanding checks totaled $3,575. Instructions Prepare the bank reconciliation at September 30.
The following information relates to the Cash account in the ledger of Lee Company. Balance September 1—$25,725; Cash deposited—$96,000. Balance September 30—$22,225; Checks written—$99,500. The September bank statement shows a balance of $24,635 on September 30 and the following memoranda. Credits Debits Collection of a $4,250 note plus interest $50 $4,300 NSF check: J. E. Hoover $735 Interest earned on checking account $40 Safety deposit box rent $75 At September 30, deposits in transit were $4,695, and outstanding checks totaled $3,575. Instructions Prepare the bank reconciliation at September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. The following information relates to the Cash account in the ledger of Lee Company. Balance September 1—$25,725; Cash deposited—$96,000. Balance September 30—$22,225; Checks written—$99,500. The September bank statement shows a balance of $24,635 on September 30 and the following memoranda. Credits Debits Collection of a $4,250 note plus interest $50 $4,300 NSF check: J. E. Hoover $735 Interest earned on checking account $40 Safety deposit box rent $75 At September 30, deposits in transit were $4,695, and outstanding checks totaled $3,575. Instructions Prepare the bank reconciliation at September 30.
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