Question

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Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted...

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, September 30 $ 3,181
Deposits in transit 421
Notes receivable and interest collected by bank 888
Bank charge for check printing 29
Outstanding checks 1,347
NSF check 144

a.$2,970

b.$3,896

c.$2,255

d.$3,114

Bank Reconciliation

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

Cash balance according to the company's records at July 31 $15,470.

Cash balance according to the bank statement at July 31, $16,510.

Checks outstanding, $3,140.

Deposit in transit, not recorded by bank, $2,520.

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

Bank debit memo for service charges, $30.

a. Prepare a bank reconciliation, using the format shown in Exhibit 14.

Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement $
Adjusted balance $
Cash balance according to company's records $
Adjusted balance $

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

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

Consider the following information taken from the cash account. Assume cash payments were 80% of collections.

Cash
?? Beginning balance
$115,375 Collections
?? Disbursements
$80,275 Ending balance


How much was the beginning balance of the cash account?

a.$92,300

b.$103,350

c.$57,200

d.$35,100

Solutions

Expert Solution

1
Cash balance per books, September 30 3181
Add: Notes receivable and interest collected by bank 888
Less: Bank charge for check printing 29
Less: NSF check 144
Adjusted cash balance per books 3896
Option B is correct
2
a
Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement 16510
Add deposit in transit, not recorded by bank 2520
Deduct outstanding checks 3140
Adjusted balance 15890
Cash balance according to company's records 15470
Add error in recording check as $720 instead of $270 450 =720-270
Deduct bank service charge 30
Adjusted balance 15890
b
Amount reported for cash $15890
c
Yes, a bank reconciliation must always balance (reconcile)
3
Ending balance 80275
Add: Disbursements 92300 =115375*80%
Less: Collections 115375
Beginning balance 57200
Option C is correct

ekkarill92 answered 2 years ago
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