Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following information relates to Sunland Limited\'s Cash account. The reconc

ID: 2553058 • Letter: T

Question

The following information relates to Sunland Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $19,120. During the month of July, Sunland recorded cash receipts of $21,700 and cash payments of $24,300 in the general ledger Cash account. An examination of the company's July bank statement shows a balance of $19,460 on July 31; outstanding cheques $3,830; deposits in transit $1,650; EFT collections on account that were not yet recorded on the books $2,198; NSF cheque $1,242; NSF fee $78; and bank services charges $118. Determine the cash balance per Sunland Limited's books Cash balance Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)

Explanation / Answer

Answer : Cash balance per Sunland Limited books = $17,280

Sunland Limited

Bank Reconciliation

July 31

Cash Balance per bank statement

$19,460

Add:- Deposits in transit

$1,650

Less:- Outstanding Checks

($3,830)

Adjusted cash balance per bank

$17,280

Cash balance per books

$16,520

Add:-Collections on account

$2,198

Less:-NSF cheue & NSF fee

($1,320)

Less:-Bank service charges

($118)

Adjusted cash balance per books

$17,280

*Cash balance per books on July 31 = $19,120 + $21,700 - $24,300 = $16,520

"It would be appreciated if you give your feedback"

Answer : Cash balance per Sunland Limited books = $17,280

Sunland Limited

Bank Reconciliation

July 31

Cash Balance per bank statement

$19,460

Add:- Deposits in transit

$1,650

Less:- Outstanding Checks

($3,830)

Adjusted cash balance per bank

$17,280

Cash balance per books

$16,520

Add:-Collections on account

$2,198

Less:-NSF cheue & NSF fee

($1,320)

Less:-Bank service charges

($118)

Adjusted cash balance per books

$17,280