Question: A local company received its bank statement dated June 30, 2022, and reconciled its statement balance to June 30, 2022, balance in its cash account
A local company received its bank statement dated June 30, 2022, and reconciled its statement balance to June 30, 2022, balance in its cash account (balance $5,800). This bank reconciliation recognized the following items:
- Deposits in transit $3,100.
- Outstanding cheques $4,000.
- Bank service charges $100.
- An NSF cheque in the amount of $700.
- It was found that a cheque in the amount of $560 was incorrectly recorded as $650.
- What was the balance in the local companys cash account before the bank reconciliation was completed?
- What was the balance shown on the bank statement before recognizing any of the preceding items (1-5).
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