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At the end of the month, the company's general ledger shows a checking account balance of $45,000 but the bank reported the checking account balance
At the end of the month, the company's general ledger shows a checking account balance of $45,000 but the bank reported the checking account balance as $57,760 on the bank statement. Comparing the ledger with the bank statement revealed the following: Cash receipts of $26,000 and checks written by the company for $34,000 have not cleared the bank yet. The bank overcharged the company $3,600 for a check the bank cleared, $50 for service fees were charged to the company, $10 interest was earned on the bank account, and an automatic withdrawal of $2,500 for rent had cleared the bank. In addition, the bank had collected a $10,000 note receivable on the company's behalf. Also, the company identified they had incorrectly recorded a check in the general ledger, it was written for $4,500 but the company subtracted $5,400 from the ledger. Answer the following based on performing a bank reconciliation for the company. 1. How should the company treat the bank error? (add/sub from bank/general ledger) 2. How should the company treat the company error? (add/sub from bank) general ledger) 3. What is the general ledger cash balance before reconciliation? \$ 4. What is the bank statement balance before reconciliation? \$ 5. What is the general ledger balance after reconciliation? \$
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