Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

McDermott Company's bank statement for September 30 showed an ending cash balance of $1,420. The company's Cash account in its general ledger showed a $1,070

image text in transcribed

McDermott Company's bank statement for September 30 showed an ending cash balance of $1,420. The company's Cash account in its general ledger showed a $1,070 debit balance. The following information was also available as of September 30. The bank deducted $150 for an NSF check from a customer deposited on September 15 The September 30 cash receipts, $1,300, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement A $20 debit memorandum for checks printed by the bank was included with the canceled checks Outstanding checks amounted to $1,220. Included with the bank statement was a credit memo in the amount of $900 for an EFT in payment of a customer's account. Included with the canceled checks was a check for $300, drawn on the account of another company Required: a. Prepare a bank reconciliation as of September 30. McDermott Com pany Bank Reconciliation At September 30 Updates to Bank Statement Updates to Company's Books Ending Cash Balance per Bank Statement Ending Cash Balance per Books Additions: Additions: $ 0 0 $ $ 0 0 Deductions: Deductions: 0 Up-to-date ending cash balance Up-to-date ending cash balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Process Driven Comprehensive Auditing A New Way To Conduct ISO 9001 2008 Internal Audits

Authors: Paul C. Palmes

2nd Edition

0873897544, 978-0873897549

More Books

Students also viewed these Accounting questions

Question

What activities should the team leader participate in?

Answered: 1 week ago