Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at the close of business on August 31. Prepare a bank reconciliation using the following information. a. August 31 cash receipts of $1,240 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $120 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $1,120. d. In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. e. The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.
Organic Food Co.’s Cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit
at the close of business on August 31. Prepare a bank reconciliation using the following information.
a. August 31 cash receipts of $1,240 were placed in the bank’s night depository after banking hours and
were not recorded on the August 31 bank statement.
b. The bank statement shows a $120 NSF check from a customer; the company has not yet recorded this
NSF check.
c. Outstanding checks as of August 31 total $1,120.
d. In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against
Organic Food’s account.
e. The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the
cost of these services.
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