Homework SourseQuestion 1 20 points The following information regarding cas
Question 1 (20 points)
The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016:
Item
Amount
Ending Cash per Bank Statement
Ending Cash per books
$22,484
$14,794
Note collected by bank included interest of $106
$5,106
Bank Service Charges
$35
Deposits in Transit
$1,776
Outstanding Cheques
$4,717
Customer Cheque returned NSF
$322
Do the bank reconciliation in order to find the adjusted cash balance.
| Item | Amount |
| Ending Cash per Bank Statement Ending Cash per books | $22,484 $14,794 |
| Note collected by bank included interest of $106 | $5,106 |
| Bank Service Charges | $35 |
| Deposits in Transit | $1,776 |
| Outstanding Cheques | $4,717 |
| Customer Cheque returned NSF | $322 |
Solution
Bank reconciliation :
| Unadjusted balance as per bank statement | 22484 |
| Add:Deposit in transit | 1776 |
| 24260 | |
| Less: Outstanding checks | -4717 |
| Adjusted balance as per book | 19543 |
| Unadjusted balance as per book | 14794 |
| Add: Notes collected with interest | 5106 |
| 19900 | |
| Less; NSF Check | -322 |
| Less; Bank service charges | -35 |
| Adjusted balance as per book | 19543 |
