Logan Bruno Company has just received the August 31, 2020, bank statement, which is summarized below. County National Bank Disbursements Receipts Balance Balance, August 1 $ 9,369 Deposits during 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 34,903 Receipts during August 35,000 Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,050. Cash on hand at August 31 is $310. The bookkeeper 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, 2020, proceeding to a correct 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?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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County National Bank		Disbursements		Balance
Balance, August 1				$ 9,369
Deposits during 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

Cash
Balance, August 1		10,050	Disbursements in August		34,903
Receipts during August	35,000

Instructions

a. Prepare a bank reconciliation dated August 31, 2020, proceeding to a correct 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?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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