Letterman Corporations bank statement for the month of April included the following information: Bank service charge for
Question:
Letterman Corporation’s bank statement for the month of April included the following information:
Bank service charge for April . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . $130
Check deposited by Letterman during April was not collectible
and has been marked “NSF” by the bank and returned . . . . . . . . . . . . . . . . . 400
In comparing the bank statement to its own cash records, Letterman found:
Deposits made but not yet recorded by the bank . . . . . . . . . . . . . . . . . . . . . . $1,324
Checks written and mailed but not yet recorded by the bank . . . . . . . . . . . . . 987
All the deposits in transit and outstanding checks have been properly recorded in Letterman’s books. Letterman also found a check for $350, payable to Letterman Corporation that had not yet been deposited and had not been recorded in Letterman’s books. Letterman’s books show a bank account balance of $9,213 (before any adjustments or corrections). What is Letterman Corporation’s correct Cash balance at April 30?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen