Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On February 28th, the company's general ledger shows a checking account balance of $40,000. Cash receipts for the month which haven't cleared the bank are
On February 28th, the company's general ledger shows a checking account balance of $40,000. Cash receipts for the month which haven't cleared the bank are $15,000 and $10,000 of checks written by the company have not cleared the bank yet. The bank statement revealed the following: the bank undercharged them $350 for a check the bank cleared, $50 service fees, $15 interest earned, and an automatic withdrawal of $2,500 for rent and the bank had collected a $5,000 note receivable for the company. The reconciliation revealed that company had incorrectly recorded a check in the general ledger, it was only written for $250 but they subtracted $2,500 from the cash ledger. The bank statement reported the company checking account balance as $40,065 on February 28. Answer the following based on performing a bank reconciliation for the company. 1. How should the company treat the bank error? (add/sub from bank/general ledger) 2. How should the company treat the company error? (add/sub from bank/ general ledger) 3. What is the general ledger cash balance before reconciliation? $_ 4. What is the bank statement balance before reconciliation? $ 5. What is the general ledger balance after reconciliation? $.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started