II. (25 points) Prepare the bank reconeiliation for August, 2018, showing the tr
ID: 2547576 • Letter: I
Question
II. (25 points) Prepare the bank reconeiliation for August, 2018, showing the true cash balance. As of August 31, 2018, Walston Gifts has the following information available for the cash account. The bank statement shows a balance of $16,140. The unadjusted balance in the Cash account is $14,100. The bank statement contains the following information: 1. A deposit of $4,150 recorded on the books on August 31.2018, does not appear on the August bank statement. 2. It was discovered that a check to pay for inventory was correctly written and paid by the bank for $4,500 but was recorded on the books for $5,400 3. When cheeks written during the month were compared to checks paid by the bank, three checks totaling $5,3 70 were found to be outstanding. 4. A debit memo for $80 was included in t he bank statement for the purchase of a new supply of checks. Unadjusted bank balance: Add:Explanation / Answer
Answer:
(Amounts in $)
Unadjusted Balance As per Books 14100
Less : Cash Deposited but not appeared bank (4150)
Add: Excess payment Shown in Books (5400-4500) 900
Add: Cheques Outstanding at end of the month 5370
Less:Memo Debited in bank but not booked in books (80)
Balance As per Bank Statement 16140