The following information pertains to the bank transactions of Crawford Company:

a.Cash on the books as of September 30 was $499. Cash as shown on the bank statement for the same date was $1,330.
b.A deposit of $160, representing cash receipts of September 30, did not appear on the bank statement.
c.Outstanding checks totaled $240.
d.Bank service charges for September amounted to $9.
e.The bank collected for Crawford Company $840 (which includes $40 interest) on a note left for collection.
f.An NSF check for $80 from a customer, Jack Betz, was returned with the statement.

1. Prepare a bank reconciliation for Crawford Company as of September 30.
2. State the amount of cash that would appear on the balance sheet as of September 30.

Quote:

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Originally Posted by laila25

The following information pertains to the bank transactions of Crawford Company:

a.Cash on the books as of September 30 was $499. Cash as shown on the bank statement for the same date was $1,330.
b.A deposit of $160, representing cash receipts of September 30, did not appear on the bank statement.
c.Outstanding checks totaled $240.
d.Bank service charges for September amounted to $9.
e.The bank collected for Crawford Company $840 (which includes $40 interest) on a note left for collection.
f.An NSF check for $80 from a customer, Jack Betz, was returned with the statement.

1. Prepare a bank reconciliation for Crawford Company as of September 30.
2. State the amount of cash that would appear on the balance sheet as of September 30.

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Bank statement cash balance... $1,330... Book balance... $499
Add... Add
Deposit of sep 30 on transit... 160... Collected ammt... 800
... $1,490... Interest revenue... 40
Deduct... $1,339
... Deduct
Outstanding checks... 240... NSF check... 80
... Bank service charges... 9... 89
Balance after adjustments... $1,250... Balance after adjustments... $1,250

Now that you have the bank reconciliation you can answer Qs 2