You must complete part 1 before completing part 2. on the following data, prepare a bank reconciliation for December of the ca nce according to the bank statement at December 31, $283,000. nce according to the ledger at December 31, $245,410. ks outstanding at December 31, $68,540. osit in transit, not recorded by bank, $29,500. debit memo for service charges, $750. eck for $12,700 in payment of an invoice was incorrectly recorded in the a
You must complete part 1 before completing part 2. on the following data, prepare a bank reconciliation for December of the ca nce according to the bank statement at December 31, $283,000. nce according to the ledger at December 31, $245,410. ks outstanding at December 31, $68,540. osit in transit, not recorded by bank, $29,500. debit memo for service charges, $750. eck for $12,700 in payment of an invoice was incorrectly recorded in the a
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 19E
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Transcribed Image Text:The following is a comprehensive problem which encompasses all of the elements learmed in previous chapters. You can refer to the objectives for each chapter covered as a review of the
concepts.
Note: You must complete part 1 before completing part 2.
Based on the following data, prepare a bank reconciliation for December of the current year:
a. Balance according to the bank statement at December 31, $283,000.
b. Balance according to the ledger at December 31, $245,410.
c. Checks outstanding at December 31, $68,540.
d. Deposit in transit, not recorded by bank, $29,500.
e. Bank debit memo for service charges, $750.
T. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.
Kornett Company
Bank Reconciliation
December 31, 20YS
Cash balance according to bank statement
283,000
Add deposit in transit, not recorded by bank
29,500
Deduct outstanding checks
-68,540
Adjusted balance
243,960
Cash balance according to company's records
245,410
Deduct:
Bank service charges
-750
Error in recording check
-700
Adjusted balance
243,960
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