Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During June the company recorded $13,500 of deposits but the bank only showed $8,400 on the June statement. Some of the company's deposits were made

image text in transcribed

During June the company recorded $13,500 of deposits but the bank only showed $8,400 on the June statement. Some of the company's deposits were made on the last day of the month. The company's records also showed that the company wrote checks totalling $6,600 that had not yet cleared the bank. The June 30th bank statement showed a balance of $6,250. The company was surprised to see that the bank statement showed the following items that the company was not aware of until the bank statement arrived: NSF check for $965, bank fee of $5, and interest income totalling $20. What is the total effect of the adjustments made to correct the cash accounting balance as a result of the bank reconciliation? Multiple Choice decrease of $950 decrease of $2,450 decrease of $970 decrease of $1,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions