Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Acme, Inc.'s books show an ending cash balance of $10,500 before preparing the bank reconciliation. Since the bank reconciliation shows outstanding checks of $3,100,

1. Acme, Inc.'s books show an ending cash balance of $10,500 before preparing the bank reconciliation. Since the bank reconciliation shows outstanding checks of $3,100, deposits in transit of $2,100, NSF check of $110, and interest earned on the bank account of $20

What is the company's updated ending cash balance ?


2. The following information was available to the Horton Company accountant when preparing the monthly bank reconciliation

Cash balance by bank statement$1,115
Book Cash Balance (before reconciliation)842
Outstanding Check #643642
Outstanding Check #65157
bank service charges39
Customer check returned by bank as NSF90
Deposits in transit330
Interest received from the bank33


What is the amount of cash that should appear on the balance sheet after reconciliation and adjustment of the accounting records?



Step by Step Solution

3.63 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

1To determine the updated ending cash balance we need to add the deposits in transit and interest ea... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions