Question

The following information is related to the Janson Corporation. Prepare a four-column proof of cash using the format that reconciles both bank and book balances to the corrected amount.

Cash balance per books Bank statement balance Deposits in transit Checks outstanding Bank service charge 11-30-x3 $3,308 4.000 500 12-31-x3 $3,633 4.860 850 1,930 11 1,200 Other items: 2. ne bank returned NSF checks from customers totaling $160. Belmont redeposits the checks during the Tollowing month. When a check is returned, the bank debits the company's checking account. The bank collected a $300 note receivable from a customer. CK*411 was recorded in the checkbook and journal as $286; the correct amount is $268. This check is not outstanding at December 31 Tapes for bank and company cash data offer the following totals: 4. Deposit and credit memos per bank statement, $35,000; canceled checks and debit memos per bank statement, $34,140; cash receipts per cashbook, $35,050; checks written per cashbook, $34,725.

Answer 1

Janson Corporation Proof of Cash for Dec, 2003 Balance December Nov 30 Receipts Disbursements Balance Dec, 31 4.000 35,000 34,140 4,860 500 (500) 850 850 (1200) (1200) 1930 (1930) As per Bank Statement Deposit in transit At Novemeber,30 At December 31 Outstanding Checks At Novemeber,30 At December 31 Bank Service Charges for Nov Bank Service Charges for Dec NSF check Check#411 wrongly recorded in books Note receivable collected by bank Correct Amount As per Books (11) (160) 160 18 (18) (300) 35,050 35,050 (300) 3,633 3,308 3,308 34,725 34,725 3,633