Question

The information below relates to the Cash account in the ledger of Crane Company. Balance September 1-$17,000; Balance September 30-$17,604; Cash deposited $64,000. Checks written-$63,396. The September bank statement shows a balance of $16,622 on September 30 and the following memoranda. Credits Collection of $1,595 note plus interest $35 Interest earned on checking account $1,630 $50 Debits NSF check: Richard Nance Safety deposit box rent $525 $70 At September 30, deposits in transit were $4,550, and outstanding checks totaled $2,483 (a) Prepare the bank reconciliation at September 30. (List items that increase cash balance first.) CRANE COMPANY Bank Reconciliation $ $ $ $

Answer 1

@ Bank neconciliation at Sept. 30. CRANE COMPANY Bank Reconciliation Sepilember 30 hank statement Add Deposits in transit hex }:[Outstanding cheeks Adjusted cash balance pere Cash balance per $116,622 $1 4550 $ 21172 f 2483 8Y 18689 bank 17604 $ pen booke Cash balance Add : Collection of node receivable Interest ned $ 1630 8 5o earen § 1 1680 819284 hessli 525 NSF check 91 70 Safety deposit box rend Adjusted cash balance $ 595 pen books 8118689

Adjusting endries Credit 1630 © Date Accountilles & Explanadia_Debid Sept cash Noles Receivable Interest Revenue (Tottecored nato receivables Sept. cash g 50 8 1595 & 35 30, Interest Revenue $ 50 $ 525 30 525 (To record interces carened) Sept. Accounts Receivable Cash 8 CTo record NSF cheek. ) Sept. Miscellaneous expenses Clash CTo nene sa mlele depend ond) Note: You can write Mise, expenses as bank sexvice charge 8 70 30. 9 70 expenses