Question
The information below relates to the Cash account in the ledger of Minton Company. Balance September 1 - $17,150, Cash deposited - $64,000 during month
The information below relates to the Cash account in the ledger of Minton Company.
Balance September 1 - $17,150, Cash deposited - $64,000 during month of September.
Balance September 30 - $17,404; Cheques written - $63,746 during month of September.
The September bank statement shows a balance of $16,422 on September 30 and the following memoranda.
Credits:Collection of $2,500 note plus interest $30;
Interest earned on cheque account $45;
Debits:NSF cheque: Richard Nance $425;
Safety deposit box rent $65.
At September 30, deposits in transit were $5,450 and outstanding cheques totalled $2,383.
Required
(1)Prepare the bank reconciliation as at September 30.
(2)Suppose deposits in transit changed to $5,000 and the NSF cheque changed to $875.What would be the impact of these adjustments have on the cash balance as per the bank and books?
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