Question

On August 31, Year 1, the general ledger of a company shows a balance for cash of $7,824. Cash receipts yet to be deposited into the checking account total $3,218, and checks written by the academy but not yet processed by the bank total $1,305. The company's balance of cash does not reflect a bank service fee of $23 and interest earned on the checking account of $34. These amounts are included in the balance of cash of $5,922 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, Year 1. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Answer:

Correct ending balance_______ 7835

Explanation:

Cash  7824

 

Books  

Cash receipts pending on bank__-3218

Checks written_______________1305

 

Banks  

Bank service fee______________-23

Interest earned________________34

 

Bank conciliation___________--5922

Bank account_______________5922

Balance cash_______________  7824

Adjust Bank service fee_________-23

Adjust Interest earned___________34

Correct ending balance_______ 7835