Question

The balance in Happ Inc.'s general ledger Cash account was $71,580 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $63,780. Reconciling items included deposits in transit, $6,200; bank service charges, $120; NSF check written by a customer and returned with the bank statement, $2,850; outstanding checks, $1,280; and interest credited to the account during September but not recorded on the company's books, $90. Required: a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ Inc. at September 30. (Use amounts with + for increases and amounts with – for decreases.) Balance Sheet Assets Liabilities Stockholders' Net income Cash Accounts receivable © 2,850 b. What is the amount of cash to be included in the September 30 balance sheet for the company's bank account? Reconciled amount

Answer 1

Balance Sheet
Assets		Liabilities		Equity		Net Income
Cash	-2880			-30		-30
Accounts receivables	2850
Reconciled Amount	68700

C D E F G A B 1 Balance Sheet 2 Assets 3 Cash =-120-2850+90 4 Accounts receivables 2850 Liabilities Equity =G3 Net Income =90-120 6 Reconciled Amount =71580+B3