Question
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 #643 | 642 |
Outstanding Check #651 | 57 |
bank service charges | 39 |
Customer check returned by bank as NSF | 90 |
Deposits in transit | 330 |
Interest received from the bank | 33 |
What is the amount of cash that should appear on the balance sheet after reconciliation and adjustment of the accounting records?
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