Problem #3: Bank Reconciliation-Challenging 3,500 150 850 Cash balance per books, 10/31 Deposits in Transit Notes Receivable and Interest collected by bank Bank service charge Outstanding Checks NSF Check 20 2,000 170 Prepare the bank reconciliation. Note that the cash balance per bank is omitted. This eliminates the comfort that you get when the two true cash balance numbers agree. If you process each reconciling item properly, you should be able to back into the cash balance per bank. Balance per Bank Balance per books True Cash Balance True Cash Balance Problem #4 Cash Budgeting Good Place Tutoring has $10,000 cash at the start of the month. It expects to collect $20,000 from customers tutored last month. It expects to earn revenues of $100,000 this month, collecting $70,000 from customers this month and $30,000 next month. Good Place expects to pay salaries and other bills amounting to $85,000 this month. Good Place wants to start the next month with $10,000. Would Good Place have to borrow money using its credit line in order to maintain its cash balance? If so, how much