The following information pertains to Wheaton Company. All figures are in dollar
ID: 2426607 • Letter: T
Question
The following information pertains to Wheaton Company. All figures are in dollars.
Deposits in transit on August 31: 1,200
Checks Outstanding on August 31: 2,500
Wheaton has received the September 30, bank statement that is summarized below:
Item Disbursements Deposits Balance August 31 Balance 12,800
Checks deposited during September 15,225
Note collected for Wheaton during September, including $75 of interest 975
Checks cleared during September 17,470
Bank Service Charges 30
NSF check returned to depositor 800
September 30 balance 10,700
Per Wheaton’s cash ledger, during September, it wrote checks for a total of $19,500 and deposited checks for a total of $17,500. The cash ledger showed a balance of $9,500 on September 30th. Prepare a bank reconciliation dated September 30 and arrive at the correct cash balance.
Explanation / Answer
Balance as per Cash Book as on Sep 30th = 9500
Less:-Deposits Outstanding (1200+17500-15,225) = 3475
Add:- Checks Outstanding (2500 + 19,500 - 17,470) = 4530
Add:-Note Collected = 975
Less:-Bank Service Charges = 30
Less:-NSF cheque returned to Depositor = 800
Correct cash balcance/Balance as per Bank = 10,700
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