Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oranges Oct 31, 2020 bank statement showed a balance of $6,135 and cash in the general ledger showed a balance of $6,876. In preparing the
Oranges Oct 31, 2020 bank statement showed a balance of $6,135 and cash in the general ledger showed a balance of $6,876. In preparing the bank reconciliation, the following information was determined:
- Cheque #255 for $3,200 from October had not yet cleared from the bank account.
- A deposit of $3,100 was correctly recorded in the books, but it showed as $13.00 on the bank statement.
- Cheque #221 issued by Orange in the amount of $1,100, for the payment of both the bank loan and 10% of interest, had been incorrectly recorded in the books as $11.00.
- A $840 payment on account received from a customer was incorrectly recorded in the books of Orange as $480.
- An NSF cheque was returned, but the amount was illegible in the bank statement.
Which of the following statements is correct?
Multiple Choice
-
The amount of the NSF cheque was $101.
-
The amount of the NSF cheque was $125.
-
The amount of the NSF cheque was $250.
-
The amount of the NSF cheque was $729
-
The amount of the NSF cheque was $1,357.
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