Aragon Co
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E7-25 (Bank Reconciliation and Adjusting Entries) Aragon Company has just recieved the August 31, 2010, bank statement, which is summarized below.
Country national Bank Disbursements Receipts Balance
-Balance, August 1 $ 9,369
-Deposits durin August $32,200 41,569
-Note collected for depositor, including $40 interest 1,040 42,609
-Checks cleared during August $34,500 8,109
-Bank service charges 20 8,089
-Balance, August 31 8,089
***The general ledger Cash account contained the following entries for the month of August:
>>>CASH<<<
-Balance, August 1 10, 050 -Disbursements in August $35,403
-Receipts during August 35,000
***Deposits in transit at August 31 are $3,800, and check outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of august.
***INSTRUCTIONS:
(a) Prepare a bank reconciliation dated August 31, 2010, Proceeding to a corect balance.
(b) Prepare any entries necessary to make the books correct and complete.
(c) What amount of cash should be reported in the August, 31 balance sheet?
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Solution Summary
This solution is comprised of a detailed explanation to prepare a bank reconciliation dated August 31, 2010, Proceeding to a corect balance.
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***INSTRUCTIONS:
(a) Prepare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.
Balance per Bank Statement on Aug. 31
$ 8,089
Adjustments: 0
Deposits in transit
+ 3,800
Outstanding checks
- ...
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