On April 30th, the Company's general ledger shows a checking account balance of $126,300. The company's...

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On April 30th, the Company's general ledger shows a checking account balance of $126,300. The company's cash receipts for the month which haven't cleared the bank yet are $45,100 and checks written by the company this month which have not cleared the bank total $79,500. While comparing the bank statement with the general ledger the company determined the bank overcharged them $4,200 for a check the bank cleared. The bank statement also reported service fees of $100, interest the company earned on their account of $60, and an automatic withdrawal of $3,000 for rent. The bank statement also showed the bank had collected a $10,000 note receivable for the company. The company noted that one of the checks they wrote was incorrectly recorded in the general ledger, it was written for $10,200 but they had subtracted $12,000 from their checking account. The bank statement reported the company checking account balance was $165,260 on April 30. Answer the following based on performing a bank reconciliation for THE Company. 1. How should the company treat the bank error? (add/sub from bank/general ledger) 2. How should the company treat the company error? (add/sub from bank/ general ledger) 3. What is the general ledger cash balance before reconciliation? $_ 4. What is the bank statement balance before reconciliation? $_ 5. What is the general ledger balance after reconciliation? $_ On April 30th, the Company's general ledger shows a checking account balance of $126,300. The company's cash receipts for the month which haven't cleared the bank yet are $45,100 and checks written by the company this month which have not cleared the bank total $79,500. While comparing the bank statement with the general ledger the company determined the bank overcharged them $4,200 for a check the bank cleared. The bank statement also reported service fees of $100, interest the company earned on their account of $60, and an automatic withdrawal of $3,000 for rent. The bank statement also showed the bank had collected a $10,000 note receivable for the company. The company noted that one of the checks they wrote was incorrectly recorded in the general ledger, it was written for $10,200 but they had subtracted $12,000 from their checking account. The bank statement reported the company checking account balance was $165,260 on April 30. Answer the following based on performing a bank reconciliation for THE Company. 1. How should the company treat the bank error? (add/sub from bank/general ledger) 2. How should the company treat the company error? (add/sub from bank/ general ledger) 3. What is the general ledger cash balance before reconciliation? $_ 4. What is the bank statement balance before reconciliation? $_ 5. What is the general ledger balance after reconciliation? $_

Answer rating: 100% (QA)

1 The company should subtract the bank error amount of 4200 from the ... View the full answer