in reconciling the January bank statement, the Vice Presidentdiscovered that the bookkeeper had recorded a check written for$454 as $544 in the cash disbursements journal. For the bankreconciliation, the $90 error should be: A) added to balance per bank statement B) added to balance per general ledger C) deducted from balance per bank statement D) deducted from balance per general ledger
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| Prepare a bank reconciliation. Required: Show the accounting entries that must be made byMatrix in journal entry and T-Account format MATRIX INC. BANKRECONCILIATION | |
Cash balance per bank | $8,500 |
Cash balance per books (general ledger) | $7,320 |
Outstanding checks | $3,6000 |
Check mailed to the bank for deposit had | |
not reached the bank by the statement | |
date. | $2,050 |
NSF check returned by the bank for | |
accounts receivable | $200 |
July interest earned on the bank statement | $10 |
Check no. 700 for misc. expense cleared | |
the bank for $200; erroneously recorded | |
in the Matrix books for $20 | |
TMG Company provided the following data relating to the cash transactions and bank account for the month of July:
| Cash balance per ledger | ? |
| Cash balance per bank statement | ? |
| Debit memo for July service charge | 5,000 |
| Deposit of July 31 not recorded by bank until August 1 | 450,000 |
| Outstanding checks, including certified check of 50,000 | 750,000 |
| Proceeds of bank loan not recorded in ledger | 500,000 |
| Proceeds from customer note, face 400,000, collected by bank, collection fee of 15,000 | 435,000 |
| A creditor check had been entered in the book as 20,000 and was erroneously deducted by bank at | 200,000 |
| A customer check was returned by bank marked DAIF | 50,000 |
| Correct cash balance | 3,000,000 |
Please show computations/explanation.
1. What was the cash balance per ledger?
a. 2,120,000
b. 3,055,000
c. 2,555,000
d. 2,065,000
2. What is the cash balance per bank statement?
a. 3,700,000
b. 3,070,000
c. 3,050,000
d. 2,370,000
