1 Cash on hand at the company and not yet deposited at the bank. 4,800 2 EFT for monthly utility bill not yet recorded by the company. 1,600
3 Note collected by the bank and not yet recorded by the company. 10,200
4 Interest collected by the bank from note in #3 not yet recorded by the company. 1,300
5 A check witten for insurance expense for $90 was cashed. The check was recorded on the books for $160. ?
6 Checks written by the company but not yet processed by the bank. 2,600
7 Service fee charged by bank but not yet recorded by the company. 100
8 Customer checks determined by the bank to have nonsufficient funds. 3,000
Bank balance at the end of the period. 16,990
Company balance at the end of the period. 12,320
Required:
1-a. What is the revised Cash balance at the end of the period?
1-b. Is the bank reconciliation in balance?
Yes
No
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $180,000 rather than $18,000?
No effect on the bank reconciliation.
The difference of $162,000 will be subtracted from the book balance.
The difference of $162,000 will be added to the book balance.
The bank balance will be increased by $180,000.