Question

54. Based on the following information, prepare the bank reconciliation for Cougar Corp. as of December 31.

  

A. On December 31, Cougar Corp. general ledger showed a cash balance of $26,775. The company's bank statement showed an ending balance of $29,558.                                                            

                                                                 

B. A deposit on December 31 for $3,600 was not recorded by the bank until January 1.                                                        

                                                                 

C. A check for $175 received from one of Cougar's customers was noted as NSF by the bank.                                                            

                                                                 

D. A review of the company's deposits shows that a deposit entered in the company's general ledger for $200 was actually a deposit for $2000.                                                                

                                                                 

E. Cougar's bank statement showed interest earned of $21.                                                       

                                                                 

F. Cougar's bank statement shows an EFT received from a customer for $1,900.                                                                

                                                                 

G. The following information related to outstanding checks was prepared.                                                          

                                                                 

checks cashed by bank			check written by Cougar Corp
ck #	amount		ck#	amount
306	$1,200.00		306	$1,200.00
307	$235.00		307	$235.00
310	$40.00		308	$197.00
			309	$1,890.00
			310	$40.00
			311	$750.00

Answer 1

Cougar Corp.
Bank Reconciliation
At December 31
Bank statement balance	29,558	Book balance	26,775
Add:		Add:
Deposit in transit	3,600	Interest earned	21
		EFT collection	1,900
		Correction of book error	1,800
	33,158		30,496
Less:		Less:
Outstanding check:		NSF Check	-175
#308	-197
#309	-1,890
#311	-750
Adjusted bank balance	$30,321	Adjusted book balance	$30,321

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.

Thanks!!!