Question

Exercise 5-9 This information relates to the Cash account for Crane Company. Balance September 1-$17,380; Cash deposited-$64,000 Balance September 30-$18,580; Checks written-$62,800 The September bank statement shows a balance of $17,480 at September 30 and the following memoranda. Debits Credits $840 Collection of electronic funds transfer $2,110 NSF check: H. Kane Interest earned on checking account Safety deposit box rent 85 70 At September 30, deposits in transit were $5,043 and outstanding checks totaled $2,688 Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.) CRANE COMPANY Bank Reconciliation I

Answer 1

Ques 1

CRANE COMPANY 1 Bank Reconciliation 2 30-Sep-18 3 4 Cash balance per bank statement 5 Add: Deposits in transit 17480 5043 6 22523 7 Less: Outstanding checks 8 Adjusted cash balance per bank 2688 19835 10 Cash balance per books 11 Add: Collection of note receivable 12 18580 2110 Interest earned 70 13 2180 14 20760 15 Less: NSF check 16 840 Safety deposit box rent 85 17 925 18 Adjusted cash balance per books 19835 19

QUES 2

liabilities Stockholders equity Assets Cash +Accounts rec. rev exp -2110 Sep-30 2110 70 + Interest revenue Sep-30 70 Sep-30 -840 840 85 miscellaneous expenses Sep-30 -85 + +