Question

17.You are to prepare the bank reconciliation of Tree Company at March 31, using the following...

17.You are to prepare the bank reconciliation of Tree Company at March 31, using the following supplementary information: (a.) Deposit in transit at March 31, $4,880 (b.) The following checks were issued by Tree in payment of utilities but these checks had not been cleared by the bank as of March 31: no. 120, $140; no. 121, $932; no. 127, $307; no. 134, $1,200. (c.) Service charge by bank, $50. (d.) A note receivable for $4,050 left by Tree Company with bank for collection that had been collected and credited to company's account. No interest involved. (e.) A check for $70 drawn by a customer, but deducted from Tree 's account by the bank and returned with the notation "NSF." (f.) Tree 's check no. 480, issued in payment of $980 worth of office equipment, correctly written in the amount of $980 but erroneously recorded in Tree's accounting records as $890. (g.)At March 31, the balance of the Cash account according to the records of Tree Company was $5,261. (h.)The March 31 bank statement showed a balance of ?. What is unadjusted balance per bank statement at March 31?(3 Points)

$6,908

some other amount

$6,800

$7,088

Homework Answers

Answer #1

Answer:

Determination of unadjusted balance per bank statement on March 31:

Particulars Amount
Balance as per cash account records $5,261
Deposit in transit ($4,880)
In respect of cheque issued but not cleared by the bank:
Cheque No. 120 $140
Cheque No. 121 $932
Cheque No. 127 $307
Cheque No. 134 $1,200 $2,579
Service charges levied by the bank ($50)
Collection of the note receivable by the bank $4,050
Cheque return with the notation "NSF" ($70)
Erroneously recording of office equipment ($90)
Balance as per bank statement $6,800

Therefore, Option (c) i.e. $6,800 is the correct answer.

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