Question

Use the following to answer questions 9 -11

On October 31st, the general ledger of CA shows a balance for cash of $120,000. Cash receipts yet to be deposited into the checking account total $76,000, while checks written by CA but not yet processed by the bank total $107,500. The company’s balance of cash does not reflect a NSF check of $500, a service fee of $150 and interest earned of $62 and a customer payments collected by the bank of $13,000; however, these amounts are included in the balance of cash of $163,912 reported by the bank as of the end of October.

Answer the following based on the process of doing the bank reconciliation:

9. $________Determine the total amount that is used to reconcile the Bank balance (include “–“ if needed):          

10. $_______Determine the total amount that is used to reconcile the Company cash balance (include “–“ if needed)

11. $___________What is the balance in the company’s cash account after the reconciliation?                                    

Answer 1

Bank Reconciliation

Bank		Books
Balance, October 31	163,912	Balance, October 31	120,000
Add:		Add:
Deposit in transit	76,000	Interest revenue earned	62
		Bank collection of receivables	13,000
Less:		Less:
Outstanding checks	- 107,500	NSF check	- 500
		Bank service fee	- 150
Adjusted bank balance	132,412	Adjusted book balance	132,412

9. - $31,500 the total amount that is used to reconcile the Bank balance   

10. $12,412 the total amount that is used to reconcile the Company cash balance

11. $132,412 the balance in the company’s cash account after the reconciliation