The unadjusted cash account balance for a company at December 31,2009 is $15,926
ID: 2433325 • Letter: T
Question
The unadjusted cash account balance for a company at December 31,2009 is $15,926. The bank statement showed a balance of $20,700 onthis same date. The following information is available:Bank Service Charge $ 6
NSF check from customer $ 324
Deposit in transit $ 1,576
In addition, two other items were discovered:
• Check #433 for the purchase of inventory was writtencorrectly and paid by the bank correctly for $463, but was recordedon the books at $643.
• Outstanding checks at the end of November were $3,500;checks written by the company during December were $60,000; checkscleared by the bank during December were $57,000.
What is the true cash balance at December 31, 2009?
Explanation / Answer
Bank Reconciliation Statement as on 31/12/2009 -------------------------------------------------Bank Balance as per CashBook $15,926 Less : Bank Service Charges not entered in Cashbook - $6 Less : NSF Check From Customer not yetcleared - $324 Less : Deposit In Transit not yet effected byBank -$1,576 --------- -$1,906 Add : Outstanding Checks for November Cleared by bankinDecember,2009 +$3,500 Add : Checks Issued but not yet cleared bybank +$3,000 (60,000 - 57,000) Add : Over recorded purchase ofInventory +$180 (643- 463) --------- $4,774 -------- EffectiveCashBalance $20,700 ======
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.