Mini-Exercise 5-2 Bank reconciliation adjustment LO 3

The balance in Happ, Inc.s general ledger Cash account was $13,200 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $11,830. Reconciling items included deposits in transit, $1,270; bank service charges, $105; NSF check written by a customer and returned with the bank statement, $520; outstanding checks, $450; and interest credited to the account during September but not recorded on the companys books, $75.

Required:

a.

Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ, Inc., at September 30. (Enter decreases to account balances as a negative.)

Balance Sheet	Income Statement
Assets	=	Liabilities	+	Stockholders Equity		Net Income	=	Revenues		Expenses
	=		+				=
	=		+				=

b.

What is the amount of cash to be included in the September 30 balance sheet for the companys bank account?

Reconciled amount

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