Question: Radon Inc s February 28th bank statement showed an ending cash

Radon, Inc.’s February 28th bank statement showed an ending cash balance of $10,640. On February 28, Radon’s general ledger cash account showed a balance of $10,869. After comparing the general ledger to the bank statement, the following items were noted:
• Interest paid by the bank $ 129
• Deposits in transit 760
• Draft of electric bill 620
• Outstanding checks 1,227
• Service fee charged by the bank 25
• Check # 657 was written to Apple Long Distance for $796; this was the amount that was also recorded in the General Journal for $796. The check was processed through the bank for $976.
(a) Prepare a bank reconciliation for Radon, Inc.
(b) Make the required journal entries associated with the bank reconciliation.
(c) It would be possible (though not probable) for a small company do business without a checking account. Discuss the problems that attempting to operate in such a manner would create for the business.

Sale on SolutionInn
  • CreatedMarch 27, 2015
  • Files Included
Post your question