At the end of the month of July, you close the books of your company and received
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Question:
At the end of the month of July, you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed.
First, you collect the data from the June 30th reconciliation as follows:
Balance per Bank | $10,000 |
add: Deposits in Transit | $6,300 |
deduct: Outstanding Cheques | $(5,000) |
Balance per Books | $9,600 |
Second, you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Balance July 31 | $11,000 |
Deposits | $8,500 |
Cheques | $6,500 |
Third, you look at the bank statement provided by your bank and you see the following:
Balance July 31 | $10,280 |
Deposits | $13,000 |
Cheques | $10,000 |
Note collected | $700 |
Bank service charge | $ 50 |
NSF cheque | $1,000 |
Interest received | $180 |
Auto withdrawals | $250 |
What is the Adjusted balance of Cash and Bank after the AJE?
$11,000
$11,700
None of the other alternatives are correct
$10,000
$10,580
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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