Question
2Q. The balance in Happ, Inc.s general ledger Cash account was $14,520 at September 30, before reconciliation. The September 30 balance shown in the bank
2Q. The balance in Happ, Inc.s general ledger Cash account was $14,520 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $13,030. Reconciling items included deposits in transit, $1,390; bank service charges, $165; NSF check written by a customer and returned with the bank statement, $640; outstanding checks, $570; and interest credited to the account during September but not recorded on the companys books, $135.
| Required: | |
| a. | Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ, Inc., at September 30. (Enter decreases to account balances as a negative.) |
| Assets | = | Liabilities | + | Stockholder's Equity | Net Income | = | Revenues | - | Expenses | |
| $_________________ | = | $_________________ | + | $_________________ | $_________________ | = | $_________________ | - | $_________________ | |
$_________________ | = | $_________________ | + | $_________________ | $_________________ | = | $_________________ | - | $_________________ | |
| b. | What is the amount of cash to be included in the September 30 balance sheet for the companys bank account? |
Reconciled amount: $_____________________
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
