3. 8 pnts Using the following information, prepare a bankreconciliation for Goug

Question

3.

8 pnts Using the following information, prepare a bankreconciliation for Gouge Company for July 31, 2005.

a.         The bankstatement balance is $3,506.

b.         The cashaccount balance is $3,630

c.         Outstandingchecks totaled $1,085.

d.         Deposits intransit are $1,170.

e.         The bankservice charge is $30.

f.          A checkfor $98 for supplies was recorded as $89 in the ledger.

At August 31 Jones Company has this bank information: cashbalance per bank $6,950; outstanding checks $762; deposits intransit $1,700; and a bank service charge $20. Determine theadjusted cash balance per bank at August 31, 2005.

A)        Separation ofduties

B)        Limited access toassets

C)        Periodicindependent verification

D)        Sound personnelprocedures

Explanation / Answer

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BANK RECONCILIATION STATEMENT JULY 31,2005 Balance as per bank statement $3,506 Add: Deposit in transit 1,170 Less: Outstanding checks (1,085) Correct balance $3,591 Balance as per cash book $3,630 less: Error in recording check (9)         Bank service charge (30) Correct balance $3,591

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Balance as per bankstatement $6,950 Less: Deposit in transit ($1,700) Add: Outstanding checks $762 Add: Bank service charges $20 Adjusted cash balance as perbank $6,032 at August 31.

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a. seperation of duties Not much sure in 5part.

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