Question
Use the following to answer questions 21 - 25 DAN Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks
Use the following to answer questions 21 - 25
DAN Company's cash ledger reports the following for the month ending October 31, 20XE.
Deposits | Checks | ||||
Date | Amount | No. | Date | Amount | |
3-Oct | $4,500 | 1151 | 4-Oct | $1,100 | |
10-Oct | 6,520 | 1152 | 6-Oct | 850 | |
17-Oct | 5,530 | 1153 | 15-Oct | 14,200 | |
24-Oct | 7,550 | 1154 | 16-Oct | 1,650 | |
Cash receipts 10/26 -10/31 | 3,200 | 1155 | 20-Oct | 25 | |
| $27,300 | 1156 | 22-Oct | 1,960 | |
| 1157 | 29-Oct | 14,200 | ||
Balance on October 1 | $11,875 | $33,985 | |||
Receipts | 27,300 |
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Disbursements | 33,985 |
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Balance on October 31 | $5,190 |
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Information from October's bank statement and company records reveals the following additional information:
a) The ending cash balance shown on the bank statement is $18,520. b) Cash receipts of $3,200 from 10/2610/31 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $550 that did not clear the bank (NSF check). e) Check 1154 was written for $1,560 for equipment rented in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for October rent was made on October 4 for $1,200. g) DANs checking account earns interest based on the average daily balance. The amount of interest earned for October is $5. h) Last year, one of DANs customers requested their A/R be converted to a Note Receivable (they owed $2,000to DAN). On October 29th, the customer paid $2,050. ($2,000 borrowed amount plus $50 interest) directly to the bank in payment for the amount they owed DAN. i) The bank charged the following service fees: $20 for NSF check, $2 for automatic withdrawal for rent payment, and $3 for collection of the loan amount from the executive.
Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following:
Of the total checks written during the month, what amount should be deducted from the bank balance during reconciling the bank account?
Of the cash receipts, what amount should be added to the bank balance during reconciling the bank account?
When performing the bank reconciliation, how should the company treat check 1154?
The total amount of subtractions from the company cash account during the reconciliation (DO NOT INCLUDE THE ADDITIONS; also do not make the answer negative):
What is the companys cash balance after the reconciliation?
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