Question

The September 30 bank statement for Bennett Company and the September ledger account for cash are summarized here: BANK STATEMENT Checks Deposits $ 26,000 $26,550 Balance, September 1 Deposits recorded during September Checks cleared during September NSF checks-Betty Brown Bank service charges Balance, September 30 Balance $ 6,650 32,650 6, 120 5,92€ 5,877 5,877 18e Cash (A) Sept. Checks written 29,400 Sept. 1 Balance Sept. Deposits 6,650 28,800 No outstanding checks and no deposits in transit were carried over from August; however, there are deposits in transit and checks outstanding at the end of September. Required: 1. Reconcile the bank account. 2. Prepare the journal entries that should be made as the result of the bank reconciliation 3. What should the balance in the Cash account be after the reconciliation entries? 4. What total amount of cash should the company report on the September 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Reconcile the bank account. BENNETT COMPANY Bank Reconciliation, September 30 Company's Books Bank Statement Additions: Additions: Deductions: Deductions: Correct cash balance Correct cash balance Required 1 Required 2 >

Answer 1

Answer to Requirement 1: Company's Books Ending balance per cash account Additions: BENNETT COMPANY Bank Reconciliation, September 30 Bank Statement $ 6,050 Ending balance per bank statement Additions: Deposit in transit $ 5,877 ,800 $ $ 2,800 8,677 6,050 Deductions: Bank service charges NSF check - Betty Brown Deductions: Outstanding checks 2,850 180 $ $ $ $ 2,850 5,827 Correct cash balance 5,827 Correct cash balance Answer to Requirement 2: Transaction General Journal A No Journal Entry Required Debit Credit No Journal Entry Required C $ 43 43 Miscellaneous Expense Cash Accounts Receivable-Betty Brown Cash D $ 180 Answer to Requirement 3: Cash balance after reconciliation entries is $5,827. Answer to Requirement 4: Total cash reported on the September 30 balance sheet is $5,827.