Question
Sawyer Company reported the following information related to its August 31, 2018 Chase bank statement and their own records: a. The bank statements balance is
Sawyer Company reported the following information related to its August 31, 2018 Chase bank statement and their own records:
a. The bank statements balance is $3,405.
b. The cash account balance in Sawyers records is $3,193.
c. The outstanding checks total $612.
d. The deposits in transit amount to $1,415.
e. The bank service charge is $27.
f. Sawyers accountant wrote a check for $153 (in payment on an account payable) that was recorded incorrectly in the record as $135 but was paid correctly by the bank.
g. The bank collected a note receivable on behalf of Sawyer in the amount of $ 1,060.
Required: Prepare Sawyers bank reconciliation on August 31, 2018 and prove the true cash that should be reported in the Balance Sheet.
Explain the solution also.
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