Branson Co. received its bankstatement for the month ending May 31, 2009, and re

Question

Branson Co. received its bankstatement for the month ending
May 31, 2009, and reconciled the statement balance to the
May 31, 2009, balance in the Cash account. The reconciled
balance was determined to be $18,600. The reconciliation
recognized the following items:


1. A deposit made on May 31 for $10,200 was included in the Cashaccount balance but not in the bank statement balance.

2. Checks issued but not returned with the bank statement were No.673 for $2,940 and No. 687 for $5,100.

3. Bank service charges shown as a deduction on the bank statementwere $240.

4. Interest credited to Branson Co.'s account but not recorded onthe company's books amounted to $144.

5. Returned with the bank statement was a "debit memo" stating thata customer's check for $1,920 that had been deposited on May 23 hadbeen returned because the customer's account was overdrawn.

6.During a review of the checks that were returned with the bankstatement, it was noted that the amount of check No. 681 was $960but that in the company's records supporting the Cash accountbalance, the check had been erroneously recorded in the amount of$96.

Required:

(a) What was the balance in Branson Co.'s Cash account beforerecognizing any of these reconciling items? (Omit the "$" sign inyour response.)

Balance per Cash account before reconciliation
$

(b) What was the balance shown on the bank statement beforerecognizing any of these reconciling items? (Omit the "$" sign inyour response.)

Balance per bank before reconciliation
$

Explanation / Answer

A.

$

18600

240

1920

864

3024

144

21480

B.

$

18600

2940

5100

8040

10200

16440

A.

Balance in BransonCo's Cash Account before reconciling items

$

Correct Balance

18600

Add: Bank Charges

240

NSF check returned

1920

Error in recording check No.681

864

3024

Less: interest collected by bank

144

Balance as per CashAccount

21480

B.

Balance shown on the BankAccount before reconciling items

$

Correct Balance

18600

Add: Outstanding checks No.673

2940

No.687

5100

8040

Less: Deposit in Transit

10200

Balance as per bank(end of period)

16440

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