Prepare a bank reconciliation as of August 31 from the following information: a. The August 31 balance

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Prepare a bank reconciliation as of August 31 from the following information:

a. The August 31 balance shown on the bank statement is $9,050.

b. There is a deposit in transit of $1,300 at August 31.

c. Outstanding checks at August 31 totaled $1,620.

d. Interest credited to the account during August but not recorded on the company’s books amounted to $68.

e. A bank charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.

f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412.

g. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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