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On November 30th, WEDS Company's general ledger shows a checking account balance of $10,000. The company's cash receipts for the month which haven't cleared the
On November 30th, WEDS Company's general ledger shows a checking account balance of $10,000. The company's cash receipts for the month which haven't cleared the bank yet are $3,500 and checks written by the company this month which have not cleared the bank total $7,900. While comparing the bank statement with the general ledger WEDS determined the bank overcharged them $90 for a check the bank cleared. The bank statement also reported service fees of $25, interest WEDS earned on their account of $5, and an automatic withdrawal of $300 for the phone bill. The bank statement also showed the bank had collected a $1,000 in customer payments for WEDS. The company discovered that one of the checks they wrote was incorrectly recorded in the general ledger, it was written for $220 but they had subtracted $200 from their cash account. The bank statement reported the company checking account balance was $14,970 on November 30. Answer the following based on performing a bank reconciliation for WEDS 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? $ MacBook Air
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