Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Organic Food Cos cash account shows a $6,700 debit balance and its bank statement shows $6,000 on deposit at the close of business on August

image text in transcribed
Organic Food Cos cash account shows a $6,700 debit balance and its bank statement shows $6,000 on deposit at the close of business on August 31 a. August 31 cash receipts of $2,440 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $240 NSF check from a customer, the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $2,320. d. In reviewing the bank statement, an $200 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists 5140 in bank service charges, the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. ORGANIC FOOD CO. Bank Reconciliation August 31 Bank statement balance 6,000 Book balance Add $ $ 6,700 Add Bank error 0 0 6.700 6.000 Deduct Deduct: 0 6,000 Adjusted book balance Adjusted bank balance $ 5 6.700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

10th Edition

0072316373, 978-0072316377

More Books

Students also viewed these Accounting questions

Question

=+a. Does it flow? (Can anyone read it out loud without stumbling?)

Answered: 1 week ago

Question

=+e. Does it use simple language, not technical jargon?

Answered: 1 week ago