Question

QUESTION-4 The following information is available to reconc statement cash balance as of June 30. on is available to reconcile Cley Company's book balance of cash with The June 30 cash holar June 30 cash balance according to the accounting records is $58,4 balance for that date is $68,047. unting records is $58,542, and the bank statement cash a. The bank erroneously cleared a $395 ch ironeously cleared a $395 check against the account in June that was not issued by Cloy. The cumentation included with the bank statement indicates the check was actually issued by Clare Co. b. On June 30. the bank issue on June 30, the bank issued a credit memorandum for $35 interest earned on Cloy's account. when the June checks are compared with entries in the accounting records, it is found that Check No. 147 had been correctly drawn for $1,450 to pay for advertising but was erroneously entered in the accounting records as $1,540. d. A credit memorandum indicates that the bank collected $9,000 cash on a note receivable for Cloy, deducted a $30 collection fee, and credited the balance to the company's Cash account. Cloy did not record this transaction before receiving the statement. e. A debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer. The bank assessed a $25 fee for processing it. f. Cloy's June 30 daily cash receipts of $6,325 were placed in the bank's night depository on that date, but do not appear on the June 30 bank statement. g. Cloy's June 30 cash disbursements journal indicates that Check No. 1737 for $4,830 and Check No. 1740 for $3,280 were both written and entered in the accounting records, but are not among the canceled checks. h. A debit memorandum for $85.00 indicates the bank deducted the annual lock box fee for the company.

Answer 1

Balance as per bank	$     68,047.00	Balance as per accounts books		$    58,542.00
Less :		Add:
Checks outstanding	$       8,110.00	Check written in excess by mistake	$        90.00
	$     59,937.00	Note collected by bank	$   9,000.00
		Interest Revenue	$        35.00	$      9,125.00
Add :				$    67,667.00
Cash Receipts deposited after banking hours	$       6,325.00	Less :
Check issued wrongly by bank	$          395.00	NSF Check	$      870.00
		Bank Service Charges	$      140.00	$      1,010.00
Adjusted Balance as per bank	$     66,657.00	Adjusted balance as per cash book		$    66,657.00