Question

A) In Company FF's general ledger, the ending balance in the cash T-account is: $250

The company's accountant found the following reconciling items:

Bank Error = $50 (the bank accidentally recorded this expense twice)

Deposits Outstanding = $350

Service Fee = $25

EFT payment = $100

Interest earned on bank account = $20

NSF Check = $70

What is the correct ending balance for cash after reconciliation? [Ending]

B) On Company JJ's bank statement, the ending balance in the cash T-account is: $450

The company's accountant found the following reconciling items:

Bank Error = $85 (The bank recorded this expense twice)

Deposits Outstanding = $300

Note collected by the bank on behalf of the company = $100

Checks Outstanding = $60

Service Fee = $5

What is the correct ending balance for cash after reconciliation? [Ending]

C) In Company ZZZ's general ledger, the ending balance in the cash T-account is: $800

The company's accountant found the following reconciling items:

Deposits Outstanding = $750

NSF Check = $250

D) Company JKL purchases $370 of supplies with a credit card.

What account should the company debit?

What account should the company credit?

Service Fee = $10

Checks Outstanding = $160

What is the correct ending balance for cash after reconciliation?

Answer 1

1	COMPANY FF
	BALANCE AS PER CASH BOOK			250
LESS	SERVICE FEE			25
LESS	EFT PAYMENT			100
LESS	NSF CHECK			70
ADD	INTEREST EARNED			20
	ENDING BALANCE FORCASH AFTER RECONCILIATION			75

2	COMPANY JJ
	BALANCE AS PER BANK STATMNT CASH A/C			450
LESS	CHECK OUTSTANDING			60
ADD	DEPOSIT OUTSTANDING			300
ADD	BANK ERROR			85
	ENDING BALANCE FORCASH AFTER RECONCILIATION			775

3	COMPANY ZZZ
	BALANCE AS PER CASH BOOK			800
LESS	NSF CHECK			250
	ENDING BALANCE FORCASH AFTER RECONCILIATION			550

4 JKL PURCHASED 370 SUPPLIES WITH CREDIT CARD

ACCOUNT DEBIT WILL BE SUPPLIES ACCOUNT
CREDIT - BANK ACCOUNT/CREDIT CARD COMPANY ACCOUNT

FOR GETTING ENDING BALNCE REDUCE SERVICE FEE OF 10 FROM THE ENDING BALNCE AVAILABLE BEFORE RECONCILIATION