Question

TJ Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Date 3-Oct 10-Oct 17-Oct 24-Oct Cash receipts 10/26 - 10/27 Amount $30,000 47,500 44,000 39,500 8,000 $169,000 No. 1151 1152 1153 1154 1155 Checks Date Amount 4-Oct $20,000 6-Oct 18,000 15-Oct 42,000 16-Oct 10,000 20-Oct 2,500 22-Oct 1,700 29-Oct 32,000 $126,200 1156 1157 Balance on October 1 Receipts Disbursements Balance on October 31 $32,000 169,000 126,200 $74,800 Information from October's bank statement and company records reveals the following additional information: a) The ending cash balance shown on the bank statement is $109,405. b) Cash receipts of $8,000 from 10/26-10/27 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $1,000 that did not clear the bank (NSF check). e) Check 1154 was written for $1,000 for a desk purchased in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for November rent was made on October 29 for $2,200. g) TJ's checking account earns interest based on the average daily balance. The amount of interest earned for October is $35. h) Last year, one of TJ's customers requested their A/R be converted to a Note Receivable (they owed $3,000 to TJ). On October 29th, the customer paid $3,100 ($3,000 note amount plus $100 interest) directly to the bank in payment for the amount they owed TJ. i) The bank charged the following service fees: $25 for NSF check and $5 account maintenance fee. Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following:

Answer 1

Bank Reconciliation
Balance as per bank		$          109,405	Balance as per books		$            74,800
Add : Deposit in transit		$              8,000	Add:
			Error in recording	$          9,000
			Interest	$                35
			Note Collected by bank	$          3,100	$            12,135
		$          117,405			$            86,935
Less : Outstanding Checks
#1156	$          1,700		Less :
#1157	$        32,000	$            33,700	NSF Check	$          1,000
			Rent	$          2,200
			Bank Charges	$                30	$              3,230
Adjusted Balance as per bank		$            83,705	Adjusted Balance as per books		$            83,705

21.
Answer is $33700 i.e. checks outstanding

22.
Answer is $8000

23.
Answer is a. add $9,000 to the company cash account
Since amount was recorded in excess wrongly

24.
Total amount needed to reconcile company cash account = $83705 - 74800 = $8905

25.
Company's cash balance after the reconciliation = $83705