Chapter $5$

Rick Rambis operates a ski lodge center at Bull Mountain in Alaska. He has just received the monthly bank statement at October $31$ from Bull National Bank. The bank statement shows an ending balance at October $31$ of $$750.$ The following items are listed on the statement:

The bank collected rent revenue for Rick in the amount of $$330.$

Service charge of $$10.$

Two NSF checks from customers totaling $$110.$

Printing check charge of $$11.$

In reviewing his cash records and the bank statement, Rick identifies the following:

$5.$ Outstanding checks totaling $$603.$

$6.$ Deposit in transit on October $31$ of $$1,770.$

$7.$ An error made by Rick: Rick recorded a salary check for $$31$ but it cleared the bank at $$310($the amount that cleared the bank was the correct amount$).$

Rick's cash records show a balance on October $31$ of $$1,997.$

Required

a$)$ Reconcile the bank account.

b$)$ Prepare the journal entries that should be made as a result of the bank reconciliation.

c$)$ What should the balance in Rick's Cash account be after the reconciliation?

d$)$ What total amount of cash should the company report on the October $31$ balance sheet?