Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hopper Inc.'s cash balance in the accounting records, before receiving the bank statement, at June 30th was $5,700. During June the company recorded $13,500 of
Hopper Inc.'s cash balance in the accounting records, before receiving the bank statement, at June 30th was $5,700. 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 $1,500 decrease of $950 decrease of $2,450 decrease of $970
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started