Buffalo Company has just received the August 31, 2017, bank statement, which is summarized below.

County National Bank		Disbursements			Receipts		Balance
Balance, August 1							$ 12,686
Deposits during August					$ 43,599		56,285
Note collected for depositor, including $ 54 interest					1,408		57,693
Checks cleared during August		$ 46,713					10,980
Bank service charges		27					10,953
Balance, August 31							10,953

The general ledger Cash account contained the following entries for the month of August.

Cash
Balance, August 1		13,608	Disbursements in August		47,265
Receipts during August		47,390

Deposits in transit at August 31 are $ 5,145, and checks outstanding at August 31 total $ 1,422. Cash on hand at August 31 is $ 420. The bookkeeper improperly entered one check in the books at $ 146.50 which was written for $ 164.50 for supplies (expense); it cleared the bank during the month of August.

(a)

Partially correct answer iconYour answer is partially correct.

Prepare a bank reconciliation dated August 31, 2017, proceeding to a correct balance.

BUFFALO COMPANY Bank Reconciliation, August 31, 2017 County National Bank
Cash on handBalance per bank statement, August 31, 2017Outstanding checksUnderstated check for suppliesBank service chargesDeposits in transitCorrect cash balanceNote and interest collected					$
LessAdd:
	Note and interest collectedUnderstated check for suppliesBank service chargesCash on handBalance per books, August 31, 2017Outstanding checksBalance per bank statement, August 31, 2017Correct cash balanceDeposits in transit		$
	Outstanding checksBalance per bank statement, August 31, 2017Note and interest collectedUnderstated check for suppliesCorrect cash balanceDeposits in transitBank service chargesBalance per books, August 31, 2017Cash on hand
LessAdd:	Correct cash balanceCash on handBalance per books, August 31, 2017Deposits in transitBank service chargesBalance per bank statement, August 31, 2017Outstanding checksNote and interest collectedUnderstated check for supplies
Correct cash balanceCash on handNote and interest collectedBank service chargesDeposits in transitBalance per bank statement, August 31, 2017Outstanding checksBalance per books, August 31, 2017Understated check for supplies					$
Correct cash balanceOutstanding checksBalance per books, August 31, 2017Deposits in transitBank service chargesCash on handUnderstated check for suppliesNote and interest collected					$
AddLess:	Bank service chargesCorrect cash balanceBalance per bank statement, August 31, 2017Cash on handNote and interest collectedOutstanding checksDeposits in transitUnderstated check for suppliesBalance per books, August 31, 2017
AddLess:
	Note and interest collectedCorrect cash balanceDeposits in transitBalance per bank statement, August 31, 2017Outstanding checksBalance per books, August 31, 2017Cash on handBank service chargesUnderstated check for supplies		$
	Balance per books, August 31, 2017Cash on handUnderstated check for suppliesDeposits in transitNote and interest collectedOutstanding checksBalance per bank statement, August 31, 2017Bank service chargesCorrect cash balance
Deposits in transitBank service chargesOutstanding checksCash on handCorrect cash balanceBalance per books, August 31, 2017Note and interest collectedBalance per bank statement, August 31, 2017Understated check for supplies					$

eTextbook and Media

List of Accounts

Solution

Attempts: 3 of 3 used

(b)

Partially correct answer iconYour answer is partially correct.

Prepare any entries necessary to make the books correct and complete. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Aug. 31, 2017
	(To record collection of note and interest)
Aug. 31, 2017
	(To record August bank charges)
Aug. 31, 2017
	(To record error in recording check for supplies)

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

Check Answer

(c)

What amount of cash should be reported in the August 31 balance sheet?

Cash to be reported in the August 31 balance sheet

$