6. (TCO F) Daniels Company deposits all receipts and makes all payments by check
ID: 2377151 • Letter: 6
Question
6. (TCO F) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records:
MARCH 31
BANK RECONCILIATION
Balance per bank
$26,746
Add: Deposits in transit
2,100
Deduct: Outstanding checks
(3,800)
Balance per books
$25,046
Month of April Results
Per Bank
Per Books
Balance April 30
$27,995
$24,355
April deposits
8,864
13,889
April checks
13,100
14,080
April note collected
3,000
-0-
(not included in April deposits)
April bank service charge
35
-0-
April NSF check of
a customer returned by the bank
(recorded by bank as a charge)
900
-0-
Instructions
Calculate the amount of the April 30:
(1) Deposits in transit
(2) Outstanding checks
Show all your work for potential partial credit.
Explanation / Answer
Bank Reconciliation
April 31
Balance per bank statement, April 31 $ 26,746
Add: Deposits in transit $ 2,100
Less: Outstanding checks (3,800)
Correct cash balance, April31 $25046
Balance per books, April31 $ 25,046
Add: Collection of note $3,000
Less: Bank service charge $ 35
Less: NSF check 335 ($900)
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