Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Bank Reconciliation Statement
Particular Amount ($)
According to the bank statement cash balance 112,675
Add - 30,November deposits, not recorded by bank 12,200
Less - Charging check bank error ($7,250 - $2,750) -4,500
Less - outstanding checks -$41,840
Total Balance 78,535
According to the company’s record cash balance 66,935
Add - Including $385 interest note collected by bank 7,385
Add - Error in recording check($7,600-$760) 6,840
Less - bank service charge -125
Less - Because of insufficient funds check returned -2,500
Total Balance 78,535
According to the Company’s Record Cash Balance
= Company’s Indicated November Balance + Total Cash Deposits - Written Totaled
= $81,145 + $293,150 - $307,360
= $66,935
Journal Entry
On Nov 30
Cash A/c Dr.$14,225
To Interest receivables A/c $7,000
To Accounts payable A/c $6,840
To Interest revenue A/c $385
(Being receipts of cash is recorded)
On Nov 30
Accounts receivables A/c Dr. $2,500
Miscellaneous expense A/c Dr. $125
To Cash A/c $2,625
(Being cash paid is recorded)
3). According to the analysis, the cash should be reported $78,535 if balance sheet is prepared on 30 November,2019.
