Question: Eli Corp has just received its August 31 2014 bank

Eli Corp. has just received its August 31, 2014 bank statement, which is summarized as follows:
The general ledger Cash account contained the following entries for the month of August:
Deposits in transit at August 31 are $3,800, and cheques outstanding at August 31 total $1,050. Cash currently on hand at August 31 is $310 and there were postdated cheques from customers (for September 1) in the amount of $540. The bookkeeper improperly entered one cheque in the books at $146.50. The cheque was actually written for $164.50 for supplies (expense) and cleared the bank during the month of August.
(a) Prepare a bank reconciliation dated August 31, 2014, proceeding to a correct balance.
(b) Prepare any entries that are needed to make the books correct and complete.
(c) 'What amount of cash should be reported on the August 31 statement of financial position?

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  • CreatedSeptember 18, 2015
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