The cash account in the general ledger of XYZ Company shows a balance of $18,700

Question

The cash account in the general ledger of XYZ Company shows a balance of $18,700 at June 30, 2015. The June 30 bank statement; however, shows a balance of $19,800. The only reconciling items consist of: • NSF check from customer • Outstanding checks totaling $5,630 • Error in recording check #970 written by XYZ Company to pay for utilities; the check was written for $588 but was recorded in XYZ Company's accounting records as having been written for $468 • A bank service charge totaling $50 • A deposit in transit in the amount of $2,380 Calculate the amount of the NSF check. Do not enter your answer with a minus sign in front of the number or use decimals in your answer.

Explanation / Answer

Bank Reconciliation Statement as on June 30 2015

Balance as per Company Book $18700 Add: Outstanding checks 5630 Less: Short recording of check -120 Less: Bank charges -50 Less: Deposits in transit -2380 21780 Less: balance as per Bank Statement at june 30, 2015 -19800 The amount of the NSF check (balancing figure) $1980

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