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1. ABC Company provided the following data for the purpose of reconciling the cash balance per book: Balance per book $170,000; Outstanding checks (Including certified
1. ABC Company provided the following data for the purpose of reconciling the cash balance per book: Balance per book $170,000; Outstanding checks (Including certified check of $20,000) $100,000; Deposit in transit $40,000, December NSF check (of which $10,000 had been re-deposited to and cleared on December 27) $30,000; Erroneous bank charge $3,000; a check of $5,000 in payment of account was recorded by the company as $500; Erroneous credit to ABC's account, representing proceeds of loan granted to another company $60,000; Proceeds of note collected by bank for ABC (net of charge of $4,000) $150,000. The cash in bank balance as shown in the bank statement on December 31 is? 2. Hilltop Company's monthly bank statement shows a balance of 54,200. Reconciliation of the statement with company books reveals the following information: Bank Service Charge - 10 Insufficient funds check - 650 Checks outstanding - 1500 Deposit in transit - 350 Check deposited by Hilltop and cleared by the bank for 125, but improperly reported by Hilltop as 152. What is the net cash balance after the reconciliation? 3. Differentiate a bank reconciliation from a proof of cash. Discuss
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