Question

1. The accounting records for ABC Corp indicated the following data for cash receipts and payments for September:

                             Cash balance per book as of September 1                       $ 4,260

                             Total cash receipts for September                                       28,972

                             Total amount of disbursements issued in September          28,389

While performing the monthly bank reconciliation, ABC’s accountant found the following reconciling

items:

1. The bank had collected for ABC Corp $900 on a note left for collection.
2. A deposit of $2,650 representing receipts of September 30 had been made too late to appear on the bank statement.

c.   Outstanding checks totaled $1,265.

d.   A check written by ABC Corp. for $139 had been incorrectly debited by the bank as $193.

e.   A check written for $30 had been recorded in ABC’s records as $230. The check was for the payment

of an obligation to Avery Equipment for the purchase of office supplies on account.

f.   Bank service charges for September amounted to $24.   

g. A customer’s NSF check was returned with the bank statement in the amount of $25.

Determine the ending balance on the September 30 bank statement:

1. $4,455
2. $5,894
3. $4,055
4. $4,565
5. $5,992

Answer 1

Ending balance as per books = Cash balance per book as of September 1 + Total cash receipts for September -  Total amount of disbursements issued in September  

=  4,260 + 28,972 -  28,389

= $4,843

Books
Balance, Sep. 30	4,843
Add:
Correction of book error	200
Bank collection of receivables	900
	5,943
Less:
NSF check	- 25
Bank service charges	- 24
Adjusted book balance	$5,894

Ending balance on the September 30 bank statement: $5,894

Correct option is (B)