Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 7 - Fraud, Internal Control, and Cash - Exercises: E7-6

Answer

a) Adjusted cash balance as per bank 3,480.20 dollars b) Adjusted cash balance as per books 3,480.20 dollars c) Accounts receivable 470.00 dollars Cash 470.00 dollars Miscellaneous Expenses 25.00 dollars Cash 25.00 dollars

Work Step by Step

a) Balance as per bank statement 3,660.20 dollars Add: Deposit in Transit 590.00 dollars Less: Outstanding checks 770.00 dollars b) Balance as per books 3,975.20 dollars Less: Bank Service Charges 25.00 dollars NSF Check 470.00 dollars c) To record Bank service charges
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