Fluffy Pet Grooming deposits all cash receipts on the day when they are received
ID: 341698 • Letter: F
Question
Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all cash payments are made by check. At the close of business on June 30, its Cash account shows a $16.295 debit balance. Fluffy Pet Grooming's June 30 bank statement shows $15,916 on deposit in the bank. Prepare a bank reconcliation for Fluffy Pet Grooming using the following information a. Outstanding checks as of June 30 total $2,485 b. The June 30 bank statement included a $75 debit memorandum for bank services c. Check No. 919, listed with the canceled checks, was correctly drawn for $865 in payment of a utility bill on June 15. Fluffy Pet Grooming mistakenly recorded it with a debit to Utlities Expense and a credit to Cash In the amount of $798 d. The June 30 cash receipts of $2.786 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement What is the adjusted bank balance? O $16.370 O $15.731 O $16,405 O $15,994 O $16.217Explanation / Answer
CALCULATION OF THE ADJUSTED BANK BALANCE Balance as per bank Statement $ 15,916 Adjustements : Bank Charged already Debited in bank - No Effect $ - Outstanding Check - (pending for payment) $ -2,485 Correction in check (No correction in bank book) $ - Cash Deposited but not recorded $ 2,786 Total $ 16,217 Answer = Option 5 = $ 16,217