Revise your worksheet to reflect the following transactions and updated values at the end of the accounting period, then answer the questions that follow. 7,200 1,400 9,900 1,100 1. Cash on hand at the company and not yet deposited at the bank.
2. EFT for monthly utility bill not yet recorded by the company.
3. Note collected by the bank and not yet recorded by the company.
4. Interest collected by the bank from note in #3 not yet recorded by the company.
5. A check witten for insurance expense for $110 was cashed. The check was recorded on the books for $190.
6. Checks written by the company but not yet processed by the bank.
7. Service fee charged by bank but not yet recorded by the company.
8. Customer checks determined by the bank to have nonsufficient funds. 3,100 100 2,700
Bank balance at the end of the period.
Company balance at the end of the period. 19,610 16,830 Required:
1-a. What is the revised
Cash balance at the end of the period?
Cash $ 23,710 1-b. Is the bank reconciliation in balance?
Yes
Nο
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
Cash 2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $190,000 rather than $19,000?
No effect on the bank reconciliation.
The difference of $171,000 will be subtracted from the book balance.
The difference of $171,000 will be added to the book balance.
The bank balance will be increased by $190,000.