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At the end of February, Howard Productions' accounting records reveal a balance for cash equal to $19,125. However, the balance of cash in the bank
At the end of February, Howard Productions' accounting records reveal a balance for cash equal to $19,125. However, the balance of cash in the bank at the end of February is only $2,835. Howard is concened and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: NSF checks (customer deposit) Deposits outstanding $5,178 7,592 Service fees Checks outstanding 8138 469 In addition, during February the company's accountant wrote a check to one of its suppliers for $150. The check was recorded correctly in the company's records for $150 but processed incorrectily by the bank for $1,500. owd has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $2,500 was established during February. This amount was withdrawn from the checking account but not recorded Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) HOWARD PRODUCTIONS Bank Reconciliation February 28 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation
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