Need help on this problem. Not sure if the choices in bold Black down bellow are
ID: 2597711 • Letter: N
Question
Need help on this problem. Not sure if the choices in bold Black down bellow are correct. I'm behind on work and need to turn this in. Any help will be greatly appreciated. Thank you! Posted this question before and got a unclear response.
Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
Cash balance according to the company's records at August 31, $21,160.
Cash balance according to the bank statement at August 31, $22,420.
Checks outstanding, $4,300.
Deposit in transit, not recorded by bank, $3,450.
A check for $270 in payment of an account was erroneously recorded in the check register as $720.
Bank debit memo for service charges, $40.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
b. If the balance sheet were prepared for Maplewood Co. on August 31, 2016, what amount should be reported for cash?
$________
c. Must a bank reconciliation always balance (reconcile)?
Cash balance according to bank statement $___________ Adjustments: Outstanding checks $_____________ Deposit in transit, not recorded by bank $__________ Total adjustments $________ Adjusted balance $________ Cash balance according to company's records $___________ Adjustments: Error in recording check $________ Bank service charge $________ Total adjustments $________ Adjusted balance $_________ Exhibit 13 Bank Reconciliation for Power Networking Power Networking Bank Reconciliation July 31, 20Y5 Step 1 $3,359.78 Step 2 Step 3 = Cash balance according to bank statement............ Adjustments: Deposit in transit on July 31 ..... Outstanding Check No. 812.. Outstanding Check No. 878.. Outstanding Check No. 883.... Total adjustments ..... Adjusted balance... $ 816.20 (1,061.00) (435.39) (48.60) (728.79) $2,630.99 Step 4 Step 5 $2,549.99 Step 6 Step 7 Step 9 Cash balance according to Power Networking.. Adjustments: Note and interest collected by bank..... Check returned because of insufficient funds. Bank service charge.... Error in recording Check No. 879.. Total adjustments .. Adjusted balance..... $ 408.00 (300.00) (18.00) (9.00) Step 8 > 81.00 $2,630.99Explanation / Answer
a Creative Design Co. Bank Reconciliation 31-Aug-16 Cash balance according to the bank statement $22,420 Add deposit in transit, not recorded by bank $3,450 $25,870 Deduct outstanding checks $4,300 Adjusted balance $21,570 Cash balance according to the company's records $21,160 Add error in recording check $450 $21,610 Deduct bank service charges $40 Adjusted balance $21,570 b $21,570, the adjusted balance from the bank reconciliation should be reported on august 31 balance sheet for Creative Design co. c Yes, the bank reconciliation must always balance (reconcile) to an adjusted balance.
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