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Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services.

Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1PB
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Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. ORGANIC FOOD COMPANY Bank Reconciliation August 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
Transcribed Image Text:Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560 on deposit at the close of business on August 31. a. August 31 cash receipts of $3,240 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 $320 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $3,120. d. In reviewing the bank statement, an $280 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $220 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. ORGANIC FOOD COMPANY Bank Reconciliation August 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
g information applies to the questions low.] d Company's Cash account shows a $7,500 e and its bank statement shows $6,560 on e close of business on August 31. cash receipts of $3,240 were placed in the ht depository after banking hours and were not on the August 31 bank statement. statement shows a $320 NSF check from a the company has not yet recorded this NSF ng checks as of August 31 total $3,120. ng the bank statement, an $280 check written c Fruits was mistakenly drawn against Organic count. st 31 bank statement lists $220 in bank service he company has not yet recorded the cost of rices. reconciliation using the above information. ORGANIC FOOD COMPANY Bank Reconciliation August 31 ce Book balance Add: Deduct: Adjusted book balance
Transcribed Image Text:g information applies to the questions low.] d Company's Cash account shows a $7,500 e and its bank statement shows $6,560 on e close of business on August 31. cash receipts of $3,240 were placed in the ht depository after banking hours and were not on the August 31 bank statement. statement shows a $320 NSF check from a the company has not yet recorded this NSF ng checks as of August 31 total $3,120. ng the bank statement, an $280 check written c Fruits was mistakenly drawn against Organic count. st 31 bank statement lists $220 in bank service he company has not yet recorded the cost of rices. reconciliation using the above information. ORGANIC FOOD COMPANY Bank Reconciliation August 31 ce Book balance Add: Deduct: Adjusted book balance
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