Question

1	Cash on hand at the company and not yet deposited at the bank.	6,400
2	EFT for monthly utility bill not yet recorded by the company.	1,700
3	Note collected by the bank and not yet recorded by the company.	10,200
4	Interest collected by the bank from note in #3 not yet recorded by the company.	1,300
5	A check witten for insurance expense for $90 was cashed. The check was recorded on the books for $160.	?
6	Checks written by the company but not yet processed by the bank.	2,600
7	Service fee charged by bank but not yet recorded by the company.	100
8	Customer checks determined by the bank to have nonsufficient funds.	3,000
	Bank balance at the end of the period.	16,750
	Company balance at the end of the period.	13,780

Required:
1-a. What is the revised Cash balance at the end of the period?

1-b. Is the bank reconciliation in balance?

• Yes

• No

2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?

2-b. Would the bank reconciliation still be in balance?

• Yes

• No

3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $200,000 rather than $20,000?

• No effect on the bank reconciliation.

• The difference of $180,000 will be subtracted from the book balance.

• The difference of $180,000 will be added to the book balance.

• The bank balance will be increased by $200,000.

Answer 1