The cash account for Capstone Medical Co. at November 30, 2016, indicated a bala

Question

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

A. Checks outstanding totaled $33,700. B. A deposit of $18,900, representing receipts of November 30, had been made too late to appear on the bank statement. C. The bank collected $22,042 on a $20,600 note, including interest of $1,442. D. A check for $1,600 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $160. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. E. A check drawn for $680 had been erroneously charged by the bank as $860. F. Bank service charges for November amounted to $40.

Explanation / Answer

1. Bank Reconciliation Statement

$ Balance as per bank statement 126590 Less: Cheques Outstanding -33700 Add: Deposits in transit 18900 Less: Notes Receivable collected by bank -22042 Add: Wrong amount of cheque recorded in cash account 1440 Add: Check wrongly charged by bank 180 Add: Bank Service charges 40 Balance as per cash account 91408 Balance as per cash book

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.