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At November 30, the balance of the Cash account according to the records of Blue Company was $125,568. The November 30 bank statement showed a
At November 30, the balance of the Cash account according to the records of Blue Company was $125,568. The November 30 bank statement showed a balance of $114,828. The following supplementary information is provided for you to answer the next 7 questions.
- Deposit in transit at November 30, $16,000.
- Outstanding checks: #811, $314; #814, $625; #832, $175.
- Service charge by bank, $50.
- A note receivable for $4,000 left by Blue with the bank for collection had been collected and credited to the company's account.
- A check for $200 drawn by a customer, I.M. Broke, but deducted from Blue's account by the bank and returned with the notation "NSF."
- Blue's check #821, issue in payment of $519 worth of office equipment, correctly written in the amount of $970, but erroneously recorded in Blue's accounting records as $915.
7. Prepare the bank reconciliation and the journal entry or entries required to correct the cash balance. No explanations are necessary
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