1. Cash on hand at the company and not yet deposited at the bank. 8,100 2. EFT for monthly utility bill not yet recorded by the company. 1,400
3. Note collected by the bank and not yet recorded by the company. 9,700
4. Interest collected by the bank from note in #3 not yet recorded
by the company. 1,300
5. A check witten for insurance expense for $90 was cashed. The check
was recorded on the books for $160.
6. Checks written by the company but not yet processed by the bank. 2,600
7. Service fee charged by bank but not yet recorded by the company. 100
8. Customer checks determined by the bank to have nonsufficient funds. 3,000
A. Bank balance at the end of the period. 16,990
B. Company balance at the end of the period. 12,320
Required:
1-A. What is the revised Cash balance at the end of the period?
1-B. Is the bank reconciliation in balance?
A. Yes
B. No
2-A. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
2-B. Would the bank reconciliation still be in balance?
A. Yes
B. No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $180,000 rather than $18,000?
A. No effect on the bank reconciliation.
B. The difference of $162,000 will be subtracted from the book balance.
C. The difference of $162,000 will be added to the book balance.
D. The bank balance will be increased by $180,000.