Exercise 7-9 This information relates to the Cash account in the ledger of Trean

Question

Exercise 7-9 This information relates to the Cash account in the ledger of Treanor Company. Balance September 1—$20,576; Cash deposited—$64,000 Balance September 30—$21,776; Checks written—$62,800 The September bank statement shows a balance of $20,676 at September 30 and the following memoranda. Credits Debits Collection of $2,006 note plus interest $30 $2,036 NSF check: H. Kane $766 Interest earned on checking account 50 Safety deposit box rent 65 At September 30, deposits in transit were $4,949 and outstanding checks totaled $2,594.

Explanation / Answer

Balance as per cash account as on 30th September 21776 Less : deposits in transit 4949 NSF Check 766 safety deposir rent 65 5780 Add : cheques outstanding 2594 Notes & Interest collected 2036 Interest earned 50 4680 Balance as per bank statement 30th September 20676

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