BE 7-10; Complete the Bank Reconcilliation statement The following information r

Question

BE 7-10; Complete the Bank Reconcilliation statement

The following information relates to Wildhorse Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $18,900. During the month of July, Wildhorse recorded cash receipts of $22,000 and cash payments of $24,300 in the general ledger Cash account. An examination of the company's July bank statement shows a balance of $19,540 on July 31; outstanding cheques $3,910; deposits in transit $1,730; EFT collections on account that were not yet recorded on the books $2,193; NSF cheque $1,247; NSF fee $73; and bank services charges $113 Determine the cash balance per Wildhorse Limited's books Cash balance$ 16900 Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.) Wildhorse Limited Bank Reconciliation July 31 Add !' Deposits in transit 1730 21270 Less | v·Outstanding cheques 3910 Less NSF cheque and fee 1320 Bank service charge 113 Reconciled cash balance per books

Explanation / Answer

Cash balance=18900+22000-24300=$16600 Cash balance per bank statement 19540 Add: Deposit in transit 1730 21270 Less: Outstanding checks 3910 Reconciled cash balance per bank 17360 Cash balance per books 16600 Add: EFT collections 2193 18793 Less: NSF check and fee 1320 Bank service charge 113 1433 Reconciled cash balance per books 17360

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