Logan Bruno Company has just received the August 31, 2020, bank statement, which is summarized below. The

Question:

Logan Bruno Company has just received the August 31, 2020, bank statement, which is summarized below.

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The general ledger Cash account contained the following entries for the month of August.

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Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,050. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instructions

a. Prepare a bank reconciliation dated August 31, 2020, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of cash should be reported in the August 31 balance sheet?

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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