Buddy Inc. shows a balance of $1,500 in its checking account in its general ledg

Question

Buddy Inc. shows a balance of $1,500 in its checking account in its general ledger at October 31. The bank statement for the same account snows a balance of $3 000 at October 31. The following additional information is available: Checks written for $300 during the month had not cleared the bank at October 31 The bank charged service charges of $35 for the month. An NSf check for $33 from a customer was returned by the bank. The company wrote a check for S100 for utility expense but accidently recorded the check for $1,658. A deposit for $290 made on October 31 did not show up on the bank statement.

Explanation / Answer

Balance as per Bank Statement $3,000 Add;Deposit in Transit $290 Less: Outstanding checks -300 Corrected Balance as per Bank $2,990 Balance per books 1500 Less: Bank Charges -35 Less: NSF Checks -33 Add: Error in company cash account (1658-100)/Books error 1558 Correct Balance $2,990

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