Question

BANK STATEMENT Date Dec. 1 Checks Deposits Other Balance $39,600 32,050 $ 7,550 11 480 $27,000 58,570 17 23 10,400 48,170 34,000 82,170 81,690 85,160 85,195 26 480 30 14,300 18,000 NSF $230 31 Interest earned 35 31 Service charge 80 85,115 NSF check from J. Left, a customer. Cash (A) Dec. 1 Deposits Dec. 11 Balance 39,600 Checks written during December: 7,550 480 27,000 34,000 23 30 18,000 11,000 10,400 480 31 80 14,300 5,250 Dec. 31 Dalance 91,060 There were no deposits in transit or outstanding checks at November 30. PA5-3 Part 5 and 6 5. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? 6. If the company also has $230 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?

Answer 1

solution 5:

Bank Reconciliation - November 30
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$85,115.00	Ending Balance as per cash books	$91,060.00
Additions:		Additions:
Outstanding Deposits	$11,000.00	Interest earned	$35.00
Deductions:		Deductions:
Outstanding Checks ($80 + $5,250)	$5,330.00	NSF Cheque	$230.00
		Service Charge	$80.00
Up to date cash balance as per bank	$90,785.00	Up to date cash balance as per books	$90,785.00

Balance will be reflected in the cash account after the reconciliation journal entries are posted = $90,785

Solution 6:

Total amount of cash and cash equivalents should be reported on Dec 31 balance sheet = Adjusted balance of cash + Petty cash in hand

= $90,785 + $230 = $91,015