On October 31st, TRI Company's general ledger shows $45,000 for the checking account balance. The company's...
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On October 31st, TRI Company's general ledger shows $45,000 for the checking account balance. The company's cash receipts for the month which haven't cleared the bank yet are $25,000 and checks written by the company this month which have not cleared the bank total $30,000. While comparing the bank statement with the general ledger TRI determined the bank erroneously deposited $500 into TRI's checking account. The bank statement also reported service fees of $25, interest TRI earned on their account of $15, and an automatic withdrawal of $400 for the phone bill. The bank statement also showed the bank had collected a $1,000 note receivable for TRI. The company noted that one of the checks they wrote was incorrectly recorded in the general ledger, it was written for $50 but they had subtracted $150 from their checking account. The bank statement reported the company checking account balance was $51,190 on October 31st. Answer the following based on performing a bank reconciliation for the FRI Company. 1 How should the company treat the bank error? Add to general ledger cash balance Add to bank statement balance Subtract from general ledger cash balance Subtract from the bank statement balance 2 How should the company treat the company error? Add to the cash ledger balance Add to bank statement balance Subtract from general ledger cash balance Subtract from bank statement balance 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 October 31st, TRI Company's general ledger shows $45,000 for the checking account balance. The company's cash receipts for the month which haven't cleared the bank yet are $25,000 and checks written by the company this month which have not cleared the bank total $30,000. While comparing the bank statement with the general ledger TRI determined the bank erroneously deposited $500 into TRI's checking account. The bank statement also reported service fees of $25, interest TRI earned on their account of $15, and an automatic withdrawal of $400 for the phone bill. The bank statement also showed the bank had collected a $1,000 note receivable for TRI. The company noted that one of the checks they wrote was incorrectly recorded in the general ledger, it was written for $50 but they had subtracted $150 from their checking account. The bank statement reported the company checking account balance was $51,190 on October 31st. Answer the following based on performing a bank reconciliation for the FRI Company. 1 How should the company treat the bank error? Add to general ledger cash balance Add to bank statement balance Subtract from general ledger cash balance Subtract from the bank statement balance 2 How should the company treat the company error? Add to the cash ledger balance Add to bank statement balance Subtract from general ledger cash balance Subtract from bank statement balance 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?
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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