The cash account in the general ledger shows a balance of $90,000 before reconci

Question

The cash account in the general ledger shows a balance of $90,000 before

reconciliation. The bank statement does not include a deposit of $4,600 made on the last

day of the month. The bank statement shows interest being added of $132, a collection

by the bank of $1,880 and a customer's check for $640 was returned because it was

NSF. A customer's check for $1,800 was recorded in the books as $1,080, and a check

written for $158 was recorded as $185. The correct balance in the cash account was

__________.

Explanation / Answer

Balance in cash account= 90000
Less:Overstated of cash as bank doesnot deposit=-4600
Less: customers return check= -640
Less: check written 158 as 185 = -27 (185-158)
Add:interest = 132
collection by bank = 1880
customers check(1800-1080) = 720

Total cash balance = 87465

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