Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 4-1B (Algo) Prepare a bank reconciliation and discuss cash procedures (LO4-4, 4-5) At the end of February, Williams Productions' accounting records reveal a balance
Problem 4-1B (Algo) Prepare a bank reconciliation and discuss cash procedures (LO4-4, 4-5) At the end of February, Williams Productions' accounting records reveal a balance for cash equal to $19,140. However, the balance of cash in the bank at the end of February is only $2,655. Williams is concerned and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: In addition, during February the company's accountant wrote a check to one of its suppliers for $135. The check was recorded correctly in the company's records for $135 but processed incorrectly by the bank for $1,350. Williams has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $2,800 was established during February. This amount was withdrawn from the checking account but not recorded. Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.)
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