Question

. DPO U 6. Outstanding checks, $7,950. 7. Note collected by bank, $10,500. EX 8-17 Entries based on bank reconciliation OBJ. 5 Which of the reconciling items listed in Exercise 8-16 require an entry in the company's accounts? Adjusted balance: 32,630 Show Me How EX 8-18 Bank reconciliation OBJ. 5 The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31, $32,110. 2. Cash balance according to the bank statement at July 31, $31,350. 3. Checks outstanding, $2,870. 4. Deposit in transit, not recorded by bank, $4,150. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $20. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? C. Must a bank reconciliation always balance (reconcile)?

ex 8-18 answers to a, b, and c

Answer 1

	Mathers Co
Bank Reconciliation
Cash balance according to bank statement					31,350
Add:	Deposit in transit				4,150
less:	Checks outstanding				2,870
Adjusted balance					32,630
Cash balance according to company's records					32,110
Add:	error in recording check (710-170)				540
less:	Bank service charge				20
Adjusted balance					32,630
b)	32,630
c)	yes