Preparing Bank Reconcliation, Entries, and Reporting Cash
The September 30, 2011, bank statement for Bennett Company and the September ledger accounts for cash are summarized here:
BANK STATEMENT | |||||||
Checks | Deposits | Balance | |||||
Balance, September 1, 20 11 |
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| $ 6.500 | ||||
Deposits recorded during Sept ember |
| $26,900 | 33,400 | ||||
Checks cleared during September | $27,400 |
| 6,000 | ||||
NSF checks-Betty Brown | 170 |
| 5,830 | ||||
Bank service charges | 60 |
| 5,770 | ||||
Balance, September 30, 2011 |
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| 5,770 | ||||
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| Cash(A) |
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Step 1 | Balance | 6,500 | Step. | Checks written | 28,900 | ||
Step. | Deposits | 28,100 |
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No outstanding check s and no deposits in transit were carried over from August: however, there are deposits in transit and checks outstanding at the end of September.
Required:
1. Reconcile the bank account.
2. Give any journal entries that should be made as the result of the bank reconciliation.
3. What should the balance in the Cash account be after the reconciliation entries?
4. What total amount of cash should the company report on the September 30 balance sheet?
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