The cash account for california company disclosed a balance of $16,348.82 on oct
ID: 2353318 • Letter: T
Question
The cash account for california company disclosed a balance of $16,348.82 on october 31. The bank statement as of October 31 showed a balance of $ 19,711.75. The following information is also available:
a) California's bank account was charged on October 25 for a customer's uncollectible check in the amount of $1,927.
b) A 2-month, 8%, $1,350 customer's not dated Aughust 25 was factored to the bank and was dishonored by the customer on October 26. The bank charged California's account for $1,374.91, which includes fees of $6.91.
c)A customer's check for $580 was entered as $530 by both the depositor and the bank, but later was corrected by the bank.
d) Check number 661 for $1,838 was enterred in the cash disbursements journal at $ 1,383 and check number 652 for $47.50 was entered as $475.
e) Bank service charged of $54.81 were not yet recorded by California in October.
f)A bank memo stated that C.Colorado's note for $1,800 and interest of $74.20 had been collected on October 29, and the bank charged a $15 collection fee. No entry was recorded whe the note was sent to the bank for collection.
g) Receipts of October 29 for $5,450 were deposited November 1.
h) the following checks were outstanding on October 31:
No. 620 $1,075
621 $2,199.98
632 $2,765.25
670 $1,776.89
671 $567.56
673 $337.99
675 $375.80
676 $1,189.49
prepare a bank reconciliation as of October 31
Explanation / Answer
Cash balance per bank: $19,711.75
Deposits in transit +5450
Checks outstanding -10287.96
Adjusted balance 14873.79
Cash balance per book: $16,348.82
Note collection +1874.20
Collection fee -15
Error +427.50
NSF Check -1927
Error +50
Error -455
Bank service charge -54.81
Dishonored note -1374.91
Adjusted balance 14873.80
It seems that we are still off by one cent. I rechecked my work and came up with the same answer. Is it possible that you left one cent off of something? Perhaps outstanding check no. 620? Once you make this adjustment, they should equal!
Hope this helps!
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