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The information below relates to the Cash account in the ledger of Minton Compan

ID: 2470834 • Letter: T

Question

The information below relates to the Cash account in the ledger of Minton Company.

Balance September 1—$17,260;

Cash deposited—$64,410.

Balance September 30—$18,204;

Checks written—$63,466.


The September bank statement shows a balance of $17,222 on September 30 and the following memoranda.

Credits

Debits

Collection of $1,893 note plus interest $37

$1,930

NSF check: Richard Nance

$825

Interest earned on checking account

$52

Safety deposit box rent

$72


At September 30, deposits in transit were $4,850, and outstanding checks totaled $2,783.

(a)

Prepare the bank reconciliation at September 30. (List items that increase cash balance first. Reconcile cash balance per bank first.)

MINTON COMPANY
Bank Reconciliation
September 30

Cash balance per bank statementDeposits in transitOutstanding checksCollection of note receivableBank service chargeAdjusted cash balance per bankInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per booksCash balance per books

$

AddLess:

Cash balance per bank statementDeposits in transitOutstanding checksCollection of note receivableBank service chargeAdjusted cash balance per bankInterest earnedNSF checkSafety deposit box rentCash balance per booksAdjusted cash balance per books

LessAdd:

Cash balance per bank statementDeposits in transitOutstanding checksCollection of note receivableBank service chargeAdjusted cash balance per bankInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per booksCash balance per books

Cash balance per bank statementDeposits in transitOutstanding checksCollection of note receivableBank service chargeAdjusted cash balance per bankInterest earnedNSF checkSafety deposit box rentCash balance per booksAdjusted cash balance per books

$

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per bankCash balance per bank statment

$

AddLess:

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per bankCash balance per bank statment

$

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentCash balance per bank statmentAdjusted cash balance per bank

AddLess:

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per bankCash balance per bank statment

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentCash balance per bank statmentAdjusted cash balance per bank

Deposits in transitOutstanding checksCash balance per booksCollection of note receivableBank service chargeAdjusted cash balance per booksInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per bankCash balance per bank statment

$

The information below relates to the Cash account in the ledger of Minton Company.

Balance September 1—$17,260;

Cash deposited—$64,410.

Balance September 30—$18,204;

Checks written—$63,466.


The September bank statement shows a balance of $17,222 on September 30 and the following memoranda.

Credits

Debits

Collection of $1,893 note plus interest $37

$1,930

NSF check: Richard Nance

$825

Interest earned on checking account

$52

Safety deposit box rent

$72


At September 30, deposits in transit were $4,850, and outstanding checks totaled $2,783.

Explanation / Answer

Minton Company Bank reconciliation Sept, 30 $ $ $ $ Bank statement balance 17222 Book Balance 18204 Add: Add: Deposit in transit 4850 Collection from notes recevable+interest 1930 Incorrect entry from cheque from Stiner 0 Interest on checking account 52 4850 1982 Total 22072 Total 20186 Deduct: Deduct: Cheque outstanding 2783 NSF cheque 825 Safety deposit rent 72 897 19289 19289