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The following information pertains to the bank transactions of Rawlins Company:

ID: 2492472 • Letter: T

Question

The following information pertains to the bank transactions of Rawlins Company:

a.       Cash on the books as of April 30 was $499. Cash as shown on the bank statement for the same date was $1,330.
b.       A deposit of $160, representing cash receipts as of April 30, did not apppear on the bank statement.
c.       Outstanding checks totaled $240.
d.       Bank service charges for April amounted to $9
e.       The bank collected for Rawlins Company $840 (which includes $40 interest) on a note left for collection.
f.       An NSF check for $80 from a customer, Joe Beck, was returned with the statement.

Required:
1.       Prepare a bank reconciliation for Rawlins Company as of April 30.
2.       State the amount of cash that would appear on the balance sheet as of April 30.

Rawlins Company

Bank Reconciliation

April 30, 2014

Rawlins Company

Bank Reconciliation

April 30, 2014

Explanation / Answer

1

Bank reconciliation for Rawlins Company as of April 30

Rawlins Company

Bank Reconciliation

April. 30, 2014

Cash on the books as of April 30

$           499

Less: Bank service charges

$              (9)

Add: Collection of note

$           840

Less: NSF check

$           (80)

Adjusted Cash Balance

$        1,250

Less: Deposit in transit

$         (160)

Add: Outstanding checks

$           240

Cash as shown on the bank statement

$        1,330

2

Amount of cash that would appear on the balance sheet as of April 30:

Adjusted Cash Balance

$        1,250

1

Bank reconciliation for Rawlins Company as of April 30

Rawlins Company

Bank Reconciliation

April. 30, 2014

Cash on the books as of April 30

$           499

Less: Bank service charges

$              (9)

Add: Collection of note

$           840

Less: NSF check

$           (80)

Adjusted Cash Balance

$        1,250

Less: Deposit in transit

$         (160)

Add: Outstanding checks

$           240

Cash as shown on the bank statement

$        1,330

2

Amount of cash that would appear on the balance sheet as of April 30:

Adjusted Cash Balance

$        1,250