The Richard’s Red Company maintains a checking account at the Bank of the North. The bank statement for the month of October 2024 indicated the following: balance on October 1, 2024 was $32,690, deposits for October totaled $86,000, checks paid in October totaled $75,200, service charges for October totaled $350; October NSF checks totaled $1,600; a monthly loan payment deducted by the bank directly from the company’s bank account totaled $3,400; and the ending balance on October 31, 2024 totaled $38,140. At the end of October 2024, Richard’s accounting records indicated a balance in its checking account of $42,544. October 31st deposits in transit were $4,224, and outstanding checks totaled $5,620. In addition, a check for $500 to purchase office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Assuming the company has no other cash, the amount Richard’s Red would report for cash as a current asset on its October 31, 2024 balance sheet is:
The Richard’s Red Company maintains a checking account at the Bank of the North. The bank statement for the month of October 2024 indicated the following: balance on October 1, 2024 was $32,690, deposits for October totaled $86,000, checks paid in October totaled $75,200, service charges for October totaled $350; October NSF checks totaled $1,600; a monthly loan payment deducted by the bank directly from the company’s bank account totaled $3,400; and the ending balance on October 31, 2024 totaled $38,140. At the end of October 2024, Richard’s accounting records indicated a balance in its checking account of $42,544. October 31st deposits in transit were $4,224, and outstanding checks totaled $5,620. In addition, a check for $500 to purchase office furniture was incorrectly recorded by the company as a $50 disbursement. The bank correctly processed the check during October. Assuming the company has no other cash, the amount Richard’s Red would report for cash as a current asset on its October 31, 2024 balance sheet is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Richard’s Red Company maintains a checking account at the Bank of the North.
The bank statement for the month of October 2024 indicated the following: balance
on October 1, 2024 was $32,690, deposits for October totaled $86,000, checks paid
in October totaled $75,200, service charges for October totaled $350; October NSF
checks totaled $1,600; a monthly loan payment deducted by the bank directly from
the company’s bank account totaled $3,400; and the ending balance on October 31,
2024 totaled $38,140. At the end of October 2024, Richard’s accounting records
indicated a balance in its checking account of $42,544. October 31st deposits in
transit were $4,224, and outstanding checks totaled $5,620. In addition, a check for
$500 to purchase office furniture was incorrectly recorded by the company as a $50
disbursement. The bank correctly processed the check during October. Assuming
the company has no other cash, the amount Richard’s Red would report for cash as a
current asset on its October 31, 2024 balance sheet is:
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