question archive The Cash account of Vincente Corp
The Cash account of Vincente Corp
Subject:AccountingPrice:2.89 Bought3
The Cash account of Vincente Corp. reported a balance of $3,640 at August 31. Included were outstanding checks totaling $800 and an August 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Tri State Bank, listed an August 31 balance of $4,775. Included in the bank balance was an August 30 collection of $685 on account from a customer who pays the bank directly. The bank statement also shows a $15 service charge, $20 of interest revenue that Vincente earned on its bank balance, and an NSF check for $55.
Prepare a bank reconciliation to determine how much cash Vincente actually has at August 31.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
|
Vincente Corp. |
|||
|
Bank Reconciliation |
|||
|
August 31, 2014 |
|||
|
BANK |
BOOKS |
||
|
Balance, August 31 |
$4,775 |
Balance, August 31 |
$3,640 |
|
Add: Deposit in transit |
300 |
Add: Bank collection |
685 |
|
|
5,075 |
Interest revenue |
20 |
|
|
|
|
4,345 |
|
Less: |
|
Less: |
|
|
Outstanding checks |
(800) |
Service charge |
(15) |
|
|
|
NSF check |
(55) |
|
Adjusted bank balance |
$4,275 |
Adjusted book balance |
$4,275 |
Vincente has cash of $4,275.
