Question
I am having trouble with this exercise *E7.25 (LO6) (Bank Reconciliation and Adjusting Entries) Aragon Company has just received the August 31, 2019, bank statement,
I am having trouble with this exercise
*E7.25(LO6)(Bank Reconciliation and Adjusting Entries)Aragon Company has just received the August 31, 2019, bank statement, which is summarized below.
County National Bank
Disbursements
Receipts
Balance
Balance, August 1$9,369
Deposits during August$32,200
41,569
Note collected for depositor, including $40 interest1,040
42,609
Checks cleared during August$34,500
8,109
Bank service charges20
8,089
Balance, August 318,089
The general ledger Cash account contained the following entries for the month of August.
Cash
Balance, August 110,050
Disbursements in August
35,403
Receipts during August35,000
Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.
Instructions
a. bank reconciliation dated August 31, 2019, proceeding to a correct balance.
b. any entries necessary to make the books correct and complete.
c.What amount of cash should be reported in the August 31 statement of financial position?
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