Answer the question and prepare the required journal entries. On November 30, 20

Question

Answer the question and prepare the required journal entries.

On November 30, 2017, the cash account shows a balance of $38,000 before reconciliation. The bank statement for November does not include a deposit of $2,300 made on the last day on the month. The bank statement shows a collection by the bank of $940 and a customer check for $220 was returned because it is NSF. A customer’s check for $450 was recorded on the books as $540, and a check written for $79 for payment of an account for inventory was recorded as $97. What is the correct cash balance on November 30, 2017?

Prepare the required journal entries in the Company’s books after the bank reconciliation was made. Omit explanations.

Explanation / Answer

Solution :- Calculation of correct cash balance on Nov. 30, 2017 :-

= 38000 + 940 - 220 - (540 - 450) - (97 - 79)

= 38000 + 940 - 220 - 90 - 18

= $ 38612.

Conclusion :- Correct cash balance as on Nov. 30, 2017 = $ 38612.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.