Question
In: Accounting
What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?
Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $20,400. The bank reconciliation for the period showed an adjustment for a deposit in transit of $2,450, outstanding checks of $3,900, an NSF check of $2,600, bank service charges of $125 and the EFT from a customer in payment of the customer's account of $3,400.
What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?
Multiple Choice
$18,275
$24,825
$18,950
$21,850
Solutions
Expert Solution
| Particulars | Amount |
| Ending balance of cash as per bank statement | $20,400 |
| Add: Deposit in transit | 2,450 |
| NSF check | 2,600 |
| Bank service charges | 125 |
| Less: Outstanding checks | 3,900 |
| EFT | 3,400 |
| Cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation) | $18,275 |
$18,275 is the correct answer.
DEEPIKA GOYAL answered 3 years agoRelated Solutions
The cash account shows a balance of $85,000 before reconciliation. The bank statement does not
The cash account shows a balance of $85,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customer’s check for $680 was returned because it was NSF. A customer’s check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $183. The correct balance in the cash account...
True or False. All items shown on the bank reconciliation as adjustments of the book (ledger)...
True or False.
All items shown on the bank reconciliation as adjustments of the
book (ledger) balance require journal entries to adjust the Cash
account, whereas items appearing as adjustments to the balance per
bank statement do not require entries by the depositor.
Answer should be: FALSE
Please explain
7. The cash account shows a balance of $62,000 before reconciliation. The bank statement does not...
7. The cash account shows a balance of $62,000 before
reconciliation. The bank statement does not include a deposit of
$4,800 made on the last day of the month. The bank statement shows
a collection by the bank of $1,500 and a customer's check for $635
was returned because it was NSF. A customer’s check for $580 was
recorded on the books as $850, and a check written for $252 was
recorded as $525. What is the correct balance in...
E5-8 Prepare bank reconciliation and adjustments. The following information pertains to Lance Company. 1. Cash balance...
E5-8 Prepare bank
reconciliation and adjustments.
The following information
pertains to Lance Company.
1.
Cash balance per bank, July 31, $7,328.
2.
July bank service charge not recorded by the
depositor $38.
3.
Cash balance per books, July 31, $7,364.
4.
Deposits in transit, July 31, $2,700.
5.
$2,016 collected for Lance Company in July by the
bank through electronic funds transfer.
The collection has not been recorded by Lance
Company.
6.
Outstanding checks, July 31, $686.
Instructions
(a)
Prepare...
Classifying bank reconciliation items The following items could appear on a bank reconciliation:
Question Classifying bank reconciliation items The following items could appear on a bank reconciliation:a. Outstanding checks, $670.b. Deposits in transit, $1,500.c. NSF check from customer, no. 548, for $175.d. Bank collection of note receivable of $800, and interest of $80.e. Interest earned on bank balance, $20.f. Service charge, $10.g. The business credited Cash for $200. The correct amount was $2,000.h. The bank incorrectly decreased the business’s account by $350 for a check written by another business.Classify each item as (1)...
The cash account shows a balance of IDR 450 million before reconciliation. The bank statement has...
The cash account shows a balance of IDR 450 million
before reconciliation. The bank statement has not taken into
account the IDR 23 million deposit made on the last day of the
month concerned. The bank statement shows direct billing by the
bank to customer A for IDR 9,400,000 and a check from customer B
for IDR 3,200,000 returned as it is NSF. Checks from customer C for
IDR 4,500,000 are recorded in the book worth IDR 5,400,000 and
customer...
Items on a Bank Reconciliation Assume that a company is preparing a bank reconciliation for the...
Items on a Bank Reconciliation
Assume that a company is preparing a bank reconciliation for the
month of June. It reconciles the bank balance and the book balance
to the correct balance.
For each of the following items, indicate whether the item is an
addition to the bank balance, an addition to the book balance, a
deduction from the bank balance, a deduction from the book balance,
or would not appear on the June reconciliation. Also, choose Yes or
No...
Dexter Company's bank reconciliation shows an adjusted cash balance of $5,398.80. The following items also appear...
Dexter Company's bank reconciliation shows an adjusted cash
balance of $5,398.80. The following items also appear on the
reconciliation:
NSF check
$182.16
Deposit in transit
357.68
Interest earned
61.24
Outstanding checks
525.43
Bank service charges
75.00
Required:
1. Determine the balance on the bank statement
prior to adjustment. Round your answer to the nearest cent.
$
2. Determine the balance on the books prior to
adjustment. Round your answer to the nearest cent.
Prepare a bank reconciliation at November 30 List items that increase balance as per bank &...
Prepare a bank reconciliation at November 30 List
items that increase balance as per bank & books
first
The bank portion of last month’s bank reconciliation for Crane
Limited at October 31 is shown here:
CRANE
LIMITED
Bank Reconciliation
October 31
Cash balance per bank
$24,920
Add: Deposits in transit
2,972
27,892
Less: Outstanding cheques
#2472
$1,430
#2473
1,600
#2474
1,038
4,068
Reconciled cash balance
$23,824
The reconciled cash balance per bank agreed with the reconciled
cash balance per books...
BANK RECONCILIATION STATEMENT The cash at bank ledgerof Starlet Limted shows a debit balance of £...
BANK RECONCILIATION STATEMENT
The cash at bank ledgerof Starlet Limted shows a debit balance
of £ 4,500 on 31st October 2017. Cheques for £ 2,000 from customers
that were recently paid into the bank have not yet been
processed.
Payments totalling £ 6,200 made by the business to its suppliers
and others have not yet been presented to the bank statement for
payment.
The bank has charged £ 700 in bank charges.
A cheque for £ 300 from a customer...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
ADVERTISEMENT