Could you please tell me how to find the answers to this question? The Cash acco
ID: 2381879 • Letter: C
Question
Could you please tell me how to find the answers to this question?
The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at December 31 (but prior to performing a bank reconciliation). The company's bank statement showed a balance of $22,000 at the same date. The only reconciling items consisted of: (1) a $5,000 deposit in transit, (2) a bank service charge of $200, (3) outstanding checks totaling $9,000, (4) a $3,000 check marked "NSF" from Susque Company, one of Lyco's customers, and (5) a check written for office supplies in the amount of $1,832, recorded by the company's bookkeeper as a debit to Office Supplies of $1,283, and a credit to Cash of $1,283.
In addition to the above information, Lyco owned the following financial assets at December 31: (1) a money market account of $60,000, (2) $3,000 of high-grade, 120-day commercial paper, and (3) $5,000 of highly liquid stock investments.
I'm trying to get the adjusted cash balance for a bank reconciliation. I don't understand what I'm doing wrong.
Explanation / Answer
PARTICULARS AMOUNT TOTAL Balance as per Cash Book [Debit] 21749 Add i) Outstanding checks 9000 9000 Less i) Deposit in transit 5000 ii) Bank Service Charge not recorded 200 iii) NSF check 3000 iv) Error on supplies 549 8749 Bank Balance as per Pass Book [Debit] 22000