Question

Question 5 The cash account of Sarasota Co showed a ledger balance of $15,663.40 on June 30, 2017. The bank statements of that date showed a balance of $16.600.00. Upon comparing the statement with the cash records, the following facts were determined 1. 2. 3. 4. 5. 6. 7. There were bank service charges for June of $100.00 A bank memo stated that Bao Dai's note for $4,200.00 and interest of $144.00 haban collected o n 29. and the bank had made a charge of $22.00 on the collection (entry had been made on Sarasota's books when Bao Dai's note was sent to the bank for collection Receipts for June 30 for $13,560.00 were not deposited until July 2 Checks outstanding on June 30 totaled $8,544.20 The bank had charged the Sarasota Co.'s account for a customer's uncollectible check amounting to $1012.10 on 29 A customer's check for $360.00 (as payment on the customer's Accounts Recalvate) had been entered as $240.00 in the cash receipts journal by Sarasota on June 15. Check no. 742 in the amount of $401.00 had been entered in the cash Journalas S419.00, and check to 74% in the amount of $22.00 had been entered as $ 2 8.00 both hackad been issued to pay for purchase of equipment and were payments on Sarasota's Accounts Payatie.

Answer 1

Bank Reconciliation

Cash balance, as per bank statement, June 30		16,600
Add: Deposit in transit		13,560
Less: Outstanding checks		- 8,544.20
Adjusted cash balance		$21,615.80
Balance as per Company's record, June 30		15,663.40
Add:
Correction of book error	2,143.20
Collection of note receivable	4,800
Interest revenue	144
		7,087.2
		22,750.6
Less:
Uncollectible check	- 1,012.80
Bank service charges	- 100
Collection charges	- 22
		- 1,034.80
Adjusted cash balance		$21,615.8

Correction of book error = 120 - 72 + 2,095.20

= $2,143.20

Please ask if you have any query related to the question. Thank you