The following information regarding cash for Alpha Company is provided for the m
ID: 2599910 • Letter: T
Question
The following information regarding cash for Alpha Company is provided for the month ending March 31, 2018:
Item Amount
Ending Cash per Bank Statement $26,000
Note collected by bank (included interest of $125) $6,125
Bank Service Charges. $75
Deposits in Transit. $2,025
Outstanding Cheques. $4,550
Customer Cheque returned NSF. $375
A review of the bank statement reflected that cheque #224 recorded in the company cheque register as $1,925 to settle an accounts payable, was paid by the bank for the amount of $1,295. What is balance per books before the completed bank reconciliation
Explanation / Answer
Calculate the balance per books before the completed bank reconciliation as follows:
The balance per books before the completed bank reconciliation is $17,170.
Ending Cash per Bank Statement 26000 Less: Note collected by bank (included interest of $125) -6125 Add: Bank Service Charges 75 Add: Deposits in Transit 2025 Less: Outstanding Cheques -4550 Add: Customer Cheque returned NSF 375 Less: Error in recording check #224 ($1925-$1295) -630 Balance per books before the completed bank reconciliation 17170Related Questions
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