Question

Please help....Read the information carefully.

An accounting clerk prepared the following bank reconciliation for Inges Corp. Inges Corp. Bank Reconciliation August 31 Cash balance according to company records $14,690 Adjustments Outstanding checks $1,020 Error by company in recording Ck. 2490 as $1,540 instead of $1,450 90 Note collected by bank, including $200 interest 3,200 Deposits in transit on August 31 (2,750) Bank service charges (40) Total adjustments 1.520 Cash balance according to bank statement $16,210 (a) Use the data in the bank reconciliation to prepare a new bank reconciliation for Inges Corp. that adjusts both the company's books and the bank statement balance in the traditional format. SHOW WORK FOR PARTIAL POINTS! (b) Ifa balance sheet were prepared for Inges Corp. on August 31, what amounts should be reported for cash?

Answer 1

Question A:

Bank Balance as per Company Records	$ 14,690.00
Add:
Cheques issued but not presented	$   1,020.00
Interest Credited but not accounted	$      200.00
Notes received by Bank but not Accounted	$   3,000.00
Less:
Deposits accounted but not credited in Bank	-$   2,750.00
Bank Service Charges Debited in Bank but not accounted	-$        40.00
Cash Balance as per Bank Statement	$ 16,120.00

Question B:

Balance as per Company Records need to be recorded in Balance Sheet.

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