Hazelton Manufacturing prepares a bank reconciliation at the end of every month. At the end of May, the general ledger checking account showed a balance of $1,360 and the bank statement showed a bank balance of $1,445. Outstanding checks totaled $350 and deposits in transit were $150. The bank statement listed service charges of $30 and NSF checks totaling $85. The corrected cash balance is:
Option (A) is correct.
Explanation:
Correct balance:
= Bank balance on bank statement + Back deposits in transit - outstanding checks
= $1,445 + $150 - $350
= $1,245
So our checking accounting shows a balance of $1360, but the correct balance is $1245.
Hence, the difference between the two is $115.
Therefore, this means that we would debit $115 back to cash.
Help Center immel, Financial Accounting, 8e Help System Announcements xercise 7-9 his information relates to the Cash account in the ledger of Oriole Company Balance September 1-$20,570; Cash deposited-$64,000 Balance September 30-$21,770; Checks written-$62,800 The September bank statement shows a balance of $20,670 at September 30 and the following memoranda. Credits Collection of electronic funds transfer Interest earned on checking account $2,400 60 Debits NSF check: H. Kane Safety deposit box rent $1,130 75 At September 30, deposits in transit...
The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, 2014, bank statement and the April ledger accounts for cash showed the following (summarized):BANK STATEMENTChecksDeposits Balance Balance, April 1, 2014$32,300 Deposits during April$37,70070,000 Interest collected1,36071,360 Checks cleared during April$46,20025,160 NSF check—A. B. Wright18024,980 Bank service charges21024,770 Balance, April 30, 201424,770Cash (A) Apr. 1 Balance25,200 Apr. Checks written41,700 Apr. Deposits42,100 A comparison of checks written...
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: $3,241 1,210 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 124 202 57 87 350 (820) $3,631 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts...
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: Balance per bank, November 30 $ 3,241 Add: Deposits outstanding 1,210 Less: Checks outstanding #363 $ 124 #365 202 #380 57 #381 87 #382 350 (820 ) Adjusted balance per bank, November 30 $ 3,631 The company’s general ledger checking account showed the following for December: Balance,...
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Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2018 bank statement included the following information: Balance, July 1, 2018 $ 57,553 Deposits 181,000 Checks processed (194,110 ) Service charges (50 ) NSF checks (1,950 ) Monthly loan payment deducted directly by bank from account (includes $370 in interest) (4,070 ) Balance, July 31, 2018 $ 38,373 The...
SLLALTUnenens Exercise 7-9 This information relates to the Cash account in the ledger of Oriole Company Balance September 1-$20,570; Cash deposited-$64,000 Balance September 30-$21,770; Checks written-$62,800 The September bank statement shows a balance of $20,670 at September 30 and the following memoranda. Credits Collection of electronic funds transfer Debits NSF check: H. Kane $2,400 $1,130 Interest earned on checking account 60 Safety deposit box rent 75 At September 30, deposits in transit were $5,323 and outstanding checks totaled $2,968. Prepare...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2021 bank statement included the following information: Balance, July 1, 2021 Deposita Checks processed Service charges NSF checks Monthly payment on note, deducted directly by bank from account (includes $870 in interest) Balance, July 31, 2021 $ 56,103 180.400 (193,510) (75) (1,650) (3.770) The company's general ledger account had...