The following information relates to Sunland Limited\'s Cash account. The reconc
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Question
The following information relates to Sunland Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $19,120. During the month of July, Sunland recorded cash receipts of $21,700 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 $19,460 on July 31; outstanding cheques $3,830; deposits in transit $1,650; EFT collections on account that were not yet recorded on the books $2,198; NSF cheque $1,242; NSF fee $78; and bank services charges $118. Determine the cash balance per Sunland Limited's books Cash balance Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)Explanation / Answer
Answer : Cash balance per Sunland Limited books = $17,280
Sunland Limited
Bank Reconciliation
July 31
Cash Balance per bank statement
$19,460
Add:- Deposits in transit
$1,650
Less:- Outstanding Checks
($3,830)
Adjusted cash balance per bank
$17,280
Cash balance per books
$16,520
Add:-Collections on account
$2,198
Less:-NSF cheue & NSF fee
($1,320)
Less:-Bank service charges
($118)
Adjusted cash balance per books
$17,280
*Cash balance per books on July 31 = $19,120 + $21,700 - $24,300 = $16,520
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Answer : Cash balance per Sunland Limited books = $17,280
Sunland Limited
Bank Reconciliation
July 31
Cash Balance per bank statement
$19,460
Add:- Deposits in transit
$1,650
Less:- Outstanding Checks
($3,830)
Adjusted cash balance per bank
$17,280
Cash balance per books
$16,520
Add:-Collections on account
$2,198
Less:-NSF cheue & NSF fee
($1,320)
Less:-Bank service charges
($118)
Adjusted cash balance per books
$17,280
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