The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:1. Cash balance according to the company’s records at July 31, $32,110.2. Cash balance according to the bank statement at July 31, $31,350.3. Checks outstanding, $2,870.4. Deposit in transit, not recorded by bank, $4,150.5. A check for $170 in payment of an account was erroneously recorded in the check register as $710.6. Bank debit memo for service charges, $20.a. Prepare a bank reconciliation, using the format shown in Exhibit 13.b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?c. Must a bank reconciliation always balance (reconcile)?

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
icon
Related questions
Question
100%

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:
1. Cash balance according to the company’s records at July 31, $32,110.
2. Cash balance according to the bank statement at July 31, $31,350.
3. Checks outstanding, $2,870.
4. Deposit in transit, not recorded by bank, $4,150.
5. A check for $170 in payment of an account was erroneously recorded in the check register as $710.
6. Bank debit memo for service charges, $20.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?
c. Must a bank reconciliation always balance (reconcile)?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning