On September 30,2011, the general ledger of The Dean Acting Academy shows a bala

Question

On September 30,2011, the general ledger of The Dean Acting Academy shows a balance for cash of $9,540. Cash receipts yet to be deposited into the checking account total $4,450, while checks written by the academy but not yet processed by the bank total $4,123. The company's balance of cash does not reflect a bank service charge of $16 and interest earned on the checking account of $78. These amounts are included in the balance of cash of $9,275 reported by the bank as of the end of September. Answer the following based on the process of doing the bank reconciliation: $ Determine the total amount that is used to reconcile the Bank balance (include if needed): $ Determine the total amount that is used to reconcile the Company cash balance (include if needed) $ What is the balance in the company's cash account after the reconciliation?

Explanation / Answer

To reconcile the bank balance you would have to add the cash reciepts that haven't been deposited ($4,450) to the bank balance and then subtract the checks that have not cleared the bank account ($4,123). To reconcile the Company cash account you would need to added the interest earned ($78) to the company's cash account and then subtract the bank service charge ($16). From doing the above, the Company's cash account balance after reconciliation would be $9,602.00

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