Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 5 - A Bank Reconciliation The following information is available to prepare a bank reconciliation for Cabbage Company on October 31 of the

image text in transcribed

Problem 5 - A Bank Reconciliation The following information is available to prepare a bank reconciliation for Cabbage Company on October 31 of the current year: a) The balance on the October 31 bank statement is $15,000. b) Cabbage made a deposit, on October 31, for $5,000 that does not appear on the bank statement. c) Bank service charges for the month were $50. d) Interest earned on this account, for October, was $10. e) The following checks were written by Cabbage, but by October 31 have not been cashed by the bank: #1158 #1172 #1173 $600 300 200 f) A customer's check was deposited by Cabbage, during October, for $100. That check appears on the bank statement with the initials "NSF." g) The bank statement shows that Cabbage made a deposit, for $500, on October 20. With a temporary employee assuming the role of bookkeeper that week, the deposit was never recorded in Cabbage 's records. h) A comparison between the checks written, by Cabbage, and the checks cashed by the bank shows that the wrong amount was charged by the bank for a check cashed. The check was written for $630, but the bank improperly charged the company $360. 1) A deposit properly made in the amount of $1,200 on October 29 was recorded by the temporary as $2,100. j) Cabbage wrote check #1150, for $500, during September. The bank cashed this check during October. Requirement: Prepare a bank reconciliation, in good form, including the calculation for balance per books before any adjustments.

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 Fundamentals

Authors: John Wild

3rd edition

978-0073527048, 0073527041, 978-0077544652

More Books

Students also viewed these Accounting questions

Question

What is a polytomous variable?

Answered: 1 week ago