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Hey I am not sure what I did wrong or what to insert, can you please help me with this? The bank statement for Farmer
Hey I am not sure what I did wrong or what to insert, can you please help me with this?
The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items: a. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724. b. Deposits in transit not recorded by bank, $425. c. Bank debit memo for service charges, $35. d. Bank credit memo for nate collected by bank, $2,475 including $75 interest. e. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer. f. Checks outstanding, $1,860. Farmer Co. Bank Reconciliation June 30 Cash balance according to bank statement 7,735 Add deposits in transit not recorded by bank 425 s 8,160 Deduct outstanding checks 1.860 $ 6,300 Adjusted balance Cash balance according to company's records Add note collected by bank, including $75 interest 4,098 2,400 Add error in recording cash sales of $742 as $724 18 75 2,493 X 256 Deduct NSF check from Janice Smith Deduct bank service charges 35 291 Adjusted balance 6,300Step by Step Solution
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