HOWARD COMPANY

Bank Reconciliation

September 30, 2017

Cash balance per bank statement

$16,500

Add: Deposits in transit

4,738

Less: Outstanding checks

2,383

Adjusted cash balance per bank

18855

Cash balance per books

$17,600

Add: Collection of note receivable

$1,830

Interest earned

45

1,875

Less: NSF check

$560

Safety deposit box rent

Value

620

Adjusted cash balance per books

18855

Stockholders' Equity

(b)

Assets

=

Liabilities +

Account

Cash +

Accts. Rec.

=

+Revenues

-Expenses

September 30

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1.

Assume that the note, interest on the note and the NSF check changed to $2,000, $50 and

$800 respectively. Outstanding checks also changed to $2,448. Show the impact of these

changes on the bank reconciliation and on the tabular adjustments.

SOLVE FOR CASH ASSETS LIABILITIES AND QUESTION 1.