The accounting records of Jen Company showed cash of $21,000 at June 30. The bal

Question

The accounting records of Jen Company showed cash of $21,000 at June 30. The balance per the bank statement at June 30 was $23,070. The only reconciling items were deposits in transit of $6,000, outstanding checks totaling $8,400, and NSF check for $300 returned by the bank which Jen had not yet charged back to the customer, and a bank service charge of $30. The preparation of a bank reconciliation should indicate cash owned by Jen at June 30 in the amount of:

A.20370

B.20670

C.20700

D.26670

Selected information from Jenna Company 2007 annual report (December 31 year-end) is shown below: 20072006 $100,000S 80,000 760,000 580,000 Inventories Cost of Goods Sold nventories (footnote): Inventories are valued by the last in, first out (LIFO) method. Jenna has used LIFO since 1960. The excess of current cost over the amount stated for inventories valued by the LIFO method amounted to approximately $20,000 at December 31, 2007 and $16,000 at December 31, 2006 respectively. The approximate current value of the inventory as of December 31, 2007 is A $100,000. B. $120,000. C$104,000. D.$136,000

Explanation / Answer

So, answer is B. $20,670

Please note that, as per chegg guidlines, need to answer only for 1 question at a time.

Cash balance as per book $ 21,000 Less: NSF Check $     (300) Less: Bank service charges $        (30) Adjusted cash balance $ 20,670

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