Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 3 cash account had a balance of

image text in transcribed
image text in transcribed
2. Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 3 cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,746.46. Upon comparing the bank statement to the books, the following items were found a. A bank debit memo issued for an NSF check from a customer of $21.25. b. A bank credit memo issued for interest of $8.50 earned during the month. c. During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement. d. A bank debit memo issued for $18.50 for bank service charges. e. Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank. f. The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank. g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank. 2. Sal's Surf Shop deposits all receipts in the bank and makes all payments by check. On July 3 cash account had a balance of $6,105.42. The bank statement on July 31 reported a balance of $4,746.46. Upon comparing the bank statement to the books, the following items were found a. A bank debit memo issued for an NSF check from a customer of $21.25. b. A bank credit memo issued for interest of $8.50 earned during the month. c. During the evening of July 31, a deposit of $1,948.25 was made, which is not shown on the bank statement. d. A bank debit memo issued for $18.50 for bank service charges. e. Checks for the amounts of $34.00, $17.85, and $93.25 were written during July but have not yet been received by the bank. f. The reconciliation from the previous month, June, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank. g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Courageous Auditing Beyond Compliance Towards Being A Catalyst For Change

Authors: Kathy Rees

1st Edition

0648958108, 978-0648958109

More Books

Students also viewed these Accounting questions

Question

Describe paraphrasing and state why it is used.

Answered: 1 week ago