Question

blish Company has just received the August 31, 2020, bank statement, which is summarized below. County National Bank Balance, August 1 Deposits during August Note collected for depositor, including $60 interest Checks cleared during August Bank service charges Balance, August 31 Disbursements Receipts Balance $13.950 $47,946 61.896 1.549 63,445 $51,370 12.075 12,045 12.045 The general ledger Cash account contained the following entries for the month of August. Cash Balance August 1 1 4.964 Disbursements in August 51.978 Receipts during August 52.115 Deposits in transitat August 31 are 55.658. and checks outstanding at August 31 total $1.563. Cash on hand at August 31 is $462. The bookkeeper improperly entered one check in the books at $147 which was written for $165 for supplies expenses it cleared the bank during the month of August.

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Answer 1

Balance as per Bank Statement, August 31,2020		$ 12,045
Add: Deposits in transit	$ 5,658
Cash on hand	$ 462
		$ 6,120
		$ 18,165
Less: Outstanding Checks		$ 1,563
Correct Cash Balance		$ 16,602
Balance per books, August 31,2020		$ 15,101
Add: Note and interest collected		$ 1,549
		$ 16,650
Less: Bank Service Charges	$ 30
Understated check for supplies	$ 18
		$ 48
Correct cash Balance		$ 16,602