Chapter 6 Demonstration Problems Demonstration Problem 6-1- Bank Reconciliation The bank statement for Greenbrier Furniture Stores showed a balance of $63,289 as of November 30. The unadjusted balance in the general ledger cash account at November 30 was $59,345. An examination of the bank statement disclosed the following information. 1. Outstanding checks totaled $24,598. 2. The bank had issued a $157 credit memo for interest deposited into Greenbrier's ac- count. 3. The bank had deducted a total of $469 for two non-sufficient funds (NSF) checks. 4. The bank statement enclosures included a debit memo for $36 the bank had deducted from Greenbrier's account to pay for new checks. 5. Deposits in transit were $19,060. 6. The bank had mistakenly deducted from Greenbrier's account a $1,246 check drawn on the Greenbay Company. Required a. Reconcile the balance shown on the bank statement with the unadjusted balance of the company's cash account. b. Based on the information above, identify three events that would require Greenbrier to make adjustments to its cash account. c. Record the events identified in Requirement b in a horizontal financial statements model. What is the book balance in Greenbrier's after the cash account has been adjusted? d. equir eane Workpapers for Chapter 6 Demonstration Problems Demonstration Problem 6-1: Requirement a Greenbrier Furniture Stores Bank Reconciliation November 30 Unadjusted bank balance $63,289 Unadjusted book balance $59,345 Add: Add: Subtract Subtract: True cash balance $58,997 $58,997 True cash balance Demonstration Problem 6-1: Requirement b 1. 2. 3. Demonstration Problem 6-1: Requirement c Statement of Cash Flows Income Statement Balance Sheet Liab. +S. Equity Assets Exp.Net Inc. Rev. +Acct. Rec. Cash (1) (2) (3) Demonstration Problem 6-1: Requirement d The balance in the cash account after the adjusting entries have been posted to the ledger accounts is $