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Exercise 6-14 (Algo) Bank reconciliation LO P3 Cabot Corporation's cash account shows a $29,100 debit balance and its bank statement shows $27,400 on deposit

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Exercise 6-14 (Algo) Bank reconciliation LO P3 Cabot Corporation's cash account shows a $29,100 debit balance and its bank statement shows $27,400 on deposit at the close of business on December 31 of year 2. a. The December 31 bank statement lists $180 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of December 31 total $6,400. c. December 31 cash receipts of $7,000 were placed in the bank's night depository after banking hours and were not recorded on the December 31 bank statement. d. In reviewing the bank statement, a $480 check written by Smith Company was mistakenly drawn against Cabot's account. e. The bank statement shows a $440 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. Bank statement balance Add: Deduct WRIGHT COMPANY Bank Reconciliation May 31 0 0 Book balance Add: Deduct 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0

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