Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brief Exercise 4-30 (Algorithmic) Bank Reconciliation Garrison Corporation was closing its books on May 31, 2020. Garrison's accountant prepared a bank reconciliation as of May

Brief Exercise 4-30 (Algorithmic) Bank Reconciliation

Garrison Corporation was closing its books on May 31, 2020. Garrison's accountant prepared a bank reconciliation as of May 31, 2020, and has found the following possible reconciling items between its book balance and its cash balance per the bank:

Garrison's book balance 10,670
Outstanding checks 960
Customer's NSF check returned by the bank 190
Interest earned on checking account 140

In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customers check: the amount was recorded in cash receipts as $290; the bank recorded the amount correctly as $920.

Required:

What amount will Garrison report as its adjusted cash balance at May 31, 2020?

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

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

10th edition

78025664, 978-0078025662

More Books

Students also viewed these Accounting questions