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On August 31,2024 , Cullumber Company had a cash balance per its books of $26,480. The bank statement on that date showed a balance of
On August 31,2024 , Cullumber Company had a cash balance per its books of $26,480. The bank statement on that date showed a balance of $17,260. A comparison of the bank statement with the Cash account revealed the following. 1. The August 31 deposit of $17,150 was not included on the August bank statement. 2. The bank statement shows that Cullumber received EFT deposits from customers on account totalling $2,230 in August. Cullumber has not recorded any of these amounts. 3. Cheque $673 for $1,470 was outstanding on July 31 . It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,340, and #712 for $2,650. 4. The bank statement showed on August 29 an NSF charge of $688 for a cheque issued by R. King, a customer, in payment of their account. This amount included an $9 service charge by Cullumber's bank. The company's policy is to pass on all NSF service charges to the customer. 5. Bank service charges of $27 were included on the August statement. 6. The bank recorded cheque #705 for $116 as $161. The cheque had been issued to pay for a building repair. Cullumber had correctly recorded the cheque. (a) Prepare a bank reconciliation at August 31. (List items that increase balance as per bank \& books first.) Prepare a bank reconciliation at August 31. (List items that increase balance as per bank \& books first.)
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