The following data were accumulated for use in reconciling the bank account of Maplewood Co. for July:

Question:

1. Cash balance according to the company’s records at July 31, $15,600.

2. Cash balance according to the bank statement at July 31, $16,230.

3. Checks outstanding, $3,180.

4. Deposit in transit, not recorded by bank, $2,950.

5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.

6. Bank debit memo for service charges, $50.

a. Prepare a bank reconciliation, using the format shown in Exhibit 7.

b. If the balance sheet were prepared for Maplewood Co. on July 31, what amount should be reported for cash?

c. Must a bank reconciliation always balance (reconcile)?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...