Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is available for use in preparing ABC Co.'s bank reconciliation as of October 31, 20X3: Unadjusted book balance per the depositor's records

image text in transcribed
image text in transcribed
The following information is available for use in preparing ABC Co.'s bank reconciliation as of October 31, 20X3: Unadjusted book balance per the depositor's records of $16,000, Unadjusted bank statement balance of $21,200, Deposits in transit of $4,750, Debit memo for an NSF check for $200, Debit memo for bank service charges of $100, Credit memo for the bank's collection of a note receivable for $7,000 for the depositor, Outstanding checks that total $2,700, and, An erroneous recording by the bank of a $550 deposit that belonged to a different company. What is the adjusted cash balance owned by the company on October 31, 20X3? ABC Co. prepares a monthly bank reconciliation, resulting in adjusted bank and depositor (book) balance(s) that are in agreement. Determine which item is best represented in ABC Co.'s bank reconciliation for the following: ABC Co. correctly wrote a check for supplies for $1,190 but recorded the check-in its general ledger for $1,910. a. Deducted from the bank balance. b. Added to the bank balance. c. Deducted from the depositor's (book) balance. d. Added to the depositor's (book) balance

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

More Books

Students also viewed these Accounting questions