Date me: Class: nancial Accounting ACCII1- Professor Horowitz-Test 4 Fall 2017 T

Question

Date me: Class: nancial Accounting ACCII1- Professor Horowitz-Test 4 Fall 2017 The bank statement for Farmer Co. indicates a balance of $7,735.00 on June 30. After the journals for June had sted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following onciling items: Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724 Deposits in transit not recorded by bank, $425. Bank debit memo for service charges, S35. Bank credit memo for note collected by bank, $2,475 including $75 interest. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. Checks outstanding, $1,860.

Explanation / Answer

Bank Reconcilliation Satement dated 30/June Balance as per bank         7,735 -Sales short booked (742-724)             -18 +bank Charges not recorded in cash book               35 +Deposit in transit            425 +Check Bounced            256 -Interest not recorded in cash book             -75 -Cheque Outstanding       -1,860 -collected through bank not recorded in cash book       -2,400 Balance as per cash book         4,098

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