Houston Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2014 indicated the following: (10 points)

Balance, July 31, 2014	$63,400
Service charge for July	160
Interest earned during July	100
NSF check from Black Corp. (deposited by Houston)	1,150

Note ($3,000) and interest ($80) collected for Houston from a

customer of Houstons

3,080

An analysis of canceled checks and deposits and the records of Houston revealed the following items:

Checking account balance per Houstons books	$58,770
Outstanding checks as of July 31		4,630
Deposit in transit at July 31		1,780
Error in recording check #205 issued by Houston		90

The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was

issued to pay for merchandise purchases. The check appeared on the bank statement correctly.

A.Prepare a bank reconciliation schedule at July 31, 2014, in proper form.

B.What amount would Houston report on its balance sheet at July 31, 2014, for cash?