Final Exam Test 4

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Question 7

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The bank statement for Dread Company for March 31, 2000, indicates a balance of $18,286.22. All cash receipts are deposited each evening in a night depository, after banking hours. The account on records indicates the following summary for cash receipts and payments for March:

$

Cash balance as at March 1 7,887.00

Total cash receipts for march 57,943.20

Total amount of cheques issued in March 56,777.70

Comparing the bank statement and the accompanying cancelled cheques and memoranda with the records revealed the following reconciling items:

(a) The bank had collected for Dread Company $2,060 on a note left for collection. The face of the note was $2,000.

(b) A deposit of $3,704.42 representing receipts of March 31, had been made too late to appear on the bank statement.

(c) Cheques outstanding totalled $10,530.54

(d) A cheque drawn for $278 had been incorrectly charged by the bank as $314.

(e) A cheque for $60 had been recorded in the deposit records as $480. The cheque was for the payment of an obligation to Super Equipment Company for the purchase of office supplies on Account.

(f) Bank service charges for March amounted to $36.40.

Required:

Based on the information above what is the amount deducted from the Balance as per bank statement.

example your answer should be written as 1,000 and as a whole number.