The following information pertains to the bank transactions of Rawlins Company:
ID: 2492472 • Letter: T
Question
The following information pertains to the bank transactions of Rawlins Company:
a. Cash on the books as of April 30 was $499. Cash as shown on the bank statement for the same date was $1,330.
b. A deposit of $160, representing cash receipts as of April 30, did not apppear on the bank statement.
c. Outstanding checks totaled $240.
d. Bank service charges for April amounted to $9
e. The bank collected for Rawlins Company $840 (which includes $40 interest) on a note left for collection.
f. An NSF check for $80 from a customer, Joe Beck, was returned with the statement.
Required:
1. Prepare a bank reconciliation for Rawlins Company as of April 30.
2. State the amount of cash that would appear on the balance sheet as of April 30.
Rawlins Company
Bank Reconciliation
April 30, 2014
Rawlins Company
Bank Reconciliation
April 30, 2014
Explanation / Answer
1
Bank reconciliation for Rawlins Company as of April 30
Rawlins Company
Bank Reconciliation
April. 30, 2014
Cash on the books as of April 30
$ 499
Less: Bank service charges
$ (9)
Add: Collection of note
$ 840
Less: NSF check
$ (80)
Adjusted Cash Balance
$ 1,250
Less: Deposit in transit
$ (160)
Add: Outstanding checks
$ 240
Cash as shown on the bank statement
$ 1,330
2
Amount of cash that would appear on the balance sheet as of April 30:
Adjusted Cash Balance
$ 1,250
1
Bank reconciliation for Rawlins Company as of April 30
Rawlins Company
Bank Reconciliation
April. 30, 2014
Cash on the books as of April 30
$ 499
Less: Bank service charges
$ (9)
Add: Collection of note
$ 840
Less: NSF check
$ (80)
Adjusted Cash Balance
$ 1,250
Less: Deposit in transit
$ (160)
Add: Outstanding checks
$ 240
Cash as shown on the bank statement
$ 1,330
2
Amount of cash that would appear on the balance sheet as of April 30:
Adjusted Cash Balance
$ 1,250
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