The statement from Lyon County Bank on December 31 showed a balance of $26,657. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected the $2,120 note receivable for Blossom Company on December 15 through electronic funds transfer. 2. The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January. 3. Checks outstanding on December 31 totaled $1,230. 4. On December 31, the bank statement showed a NSF charge of $630 for a check received by the company from M. Lawrence, a customer, on account. Prepare a bank reconciliation as of December 31 based on the available information.(Hint: The cash balance per books is $26,677. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase balance as per bank & books first.)
The statement from Lyon County Bank on December 31 showed a balance of $26,657. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected the $2,120 note receivable for Blossom Company on December 15 through electronic funds transfer. 2. The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January. 3. Checks outstanding on December 31 totaled $1,230. 4. On December 31, the bank statement showed a NSF charge of $630 for a check received by the company from M. Lawrence, a customer, on account. Prepare a bank reconciliation as of December 31 based on the available information.(Hint: The cash balance per books is $26,677. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase balance as per bank & books first.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:BLOSSOM COMPANY
Bank Reconciliation
December 31, 2022
Cash Balance per Bank Statement
%24
26,657
Add
:へ
Deposits in Transit
2,120
Less
Outstanding Checks
1,230
Adjusted Cash Balance per Bank
Cash Balance per Books
26,677
Add
v:
Electric funds transfer received
2,120
28,797
Less
NSF Check
630
Adjusted Cash Balance per Books
28,167
%24

Transcribed Image Text:The statement from Lyon County Bank on December 31 showed a balance of $26,657. A comparison of the bank statement with
the Cash account revealed the following facts.
1.
The bank collected the $2,120 note receivable for Blossom Company on December 15 through electronic funds transfer.
2.
The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the
bank in January.
3.
Checks outstanding on December 31 totaled $1,230.
4.
On December 31, the bank statement showed a NSF charge of $630 for a check received by the company from M.
Lawrence, a customer, on account.
Prepare a bank reconciliation as of December 31 based on the available information.(Hint: The cash balance per books is $26,677.
This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase balance as per bank &
books first.)
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