Bank Reconciliation Garrison Corporation was closing its boo

Bank Reconciliation Garrison Corporation was closing its books on May 31, 2018. Garrison\'s accountant prepared a bank reconciliation as of May 31, 2018, and has found the following possible reconciling items between its book balance and its cash balance per the bank: Garrison\'s book balance Outstanding cheques Customer\'s NSF cheque returned by the bank Interest earned on chequing account In the search for reconciling items, the accountant also discovered that Garrison made an error in recording a customer\'s cheque: the amount was recorded in cash receipts as $440; the bank recorded the amount correctly as $920. Required What amount will Garrison report as its adjusted cash balance at May 31, 2018? $11,150 960 190 80

Solution

Garrison\'s book balance 11150 Add: Interest earned on chequing account 80 Error in recording cheque as $920 instead of $440 (920-440) 480 560 11710 Less: Customer\'s NSF cheque returned by bank 190 Adjusted cash balance 11520 Outstanding cheques has no effect in Garrison\'s book balance