Exercise 4-9 Calculate the balance of cash using a bank reconciliation (LO4-5) S
ID: 2340950 • Letter: E
Question
Exercise 4-9 Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account balance of $22,860 on July 31, 2018. The July cash receipts of $1,775, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $44. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,350. The bank statement shows a balance of $22,391 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2018. (Amounts to be deducted should be indicated with a minus sign.) SPIELBERG COMPANY Bank Reconciliation July 31, 2018 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliationExplanation / Answer
1. SPIELBERG COMPANY
Bank Reconciliation
July 31st 2018
2. Record the amounts that increase cash
No journal entry required
Record the amounts that decrease cash
July 31, 2018 Service Fees Expense $ 44
Cash $ 44
(to record bank service fee)
Bank's Cash Balance Company's Cash Balance Per bank statement $22,391 Per general ledger $22,860 Deposits outstanding $1,775 Service Fees $ 44 Checks oustanding -$1,350 Bank Balance per reconciliation $22,816 Company balance per reconciliation $22,816Related Questions
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