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31 August, 13:38

On May 31, Money Corporation's Cash account showed a balance of $16,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding$2,950 Deposits outstanding $2,500 NSF check $240 Service Charges $80 Error: Money Corp. wrote a check for $80 but recorded it incorrectly for $800. What is the amount of cash that should be reported in the company's balance sheet as of May 31?

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  1. 31 August, 13:49
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    cash balance tobe reported in the balance sheet 16,880

    Explanation:

    cash account 16,000

    NSF check 240

    service charge (80)

    amend mistake: 720

    adjusted: 16,880‬

    the check oustanding and the deposits in-transit are adjustment for the bank balance. not the firm cash accounting

    We must look for data which wasn't know until receive the bank statement.

    Those are:

    the non-sufficient funds

    the service charge

    and the accounting mistake
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