Peay Company needs help preparing their bank reconciliation. The cash t-account on October 31, 2018 shows a balance of 3,815. The bank statement on October 31, 2018 shows a balance of 18,450. Further analysis reveals the following: a. Checks outstanding total 9,845. b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement. c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account). d. The bank paid phone bills for Peay in the amount of 275. e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
Peay Company needs help preparing their bank reconciliation. The cash t-account on October 31, 2018 shows a balance of 3,815. The bank statement on October 31, 2018 shows a balance of 18,450. Further analysis reveals the following: a. Checks outstanding total 9,845. b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement. c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account). d. The bank paid phone bills for Peay in the amount of 275. e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 11EB: Using the following information, prepare a bank reconciliation. Bank balance: $12,565. Book...
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Transcribed Image Text:Peay Company needs help preparing their bank reconciliation.
The cash t-account on October 31, 2018 shows a balance of 3,815.
The bank statement on October 31, 2018 shows a balance of 18,450.
Further analysis reveals the following:
a. Checks outstanding total 9,845.
b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement.
c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account).
d. The bank paid phone bills for Peay in the amount of 275.
e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.
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