Exam 7: Internal Control and Cash

On September 30, the books of Ravalli Company indicates a balance in the Cash account of $14,700. Determine the adjusted balance on the basis of the following reconciling items: (a)Deposits of cash sales of $1,368 had been erroneously recorded in the cash receipts journal as $1,296. (b)Deposits in transit not recorded by bank, $2,000. (c)Bank debit memorandum for service charges, $100. (d)Bank credit memorandum for note collected by bank, $11,400, including $200 interest. (e)Bank debit memorandum for $872 NSF (not-sufficient-funds) check from Bill Smith, a customer. (f)Checks outstanding, $8,800.

Use the following information to prepare a bank reconciliation for Forester Company at April 30, 2019: (1) Cash account balance, April 30, $29,359.20. (2) Bank statement balance, April 30, $32,274.60. (3) Service charge on bank statement not recorded in books, $210.00. (4) Deposits in transit, $4,315.80. (5) Outstanding checks, April 30, $2,840.40. (6) The bank statement included a charge of $1,399.20 for P. Harper's NSF check. The check, returned with the bank statement, had been received by Forester in payment on account. (7) The bank collected a $6,000.00 note in April for Forester. This amount was included in the bank statement, but Forester had not yet recorded the collection. The bank's $210.00 service charge for April [see (3) above] included collection charge for the note.

On September 30, the books of Goel Company indicates a balance in the Cash account of $11,034. Determine the adjusted balance on the basis of the following reconciling items: (a)Deposits of cash sales of $972 had been erroneously recorded in the cash receipts journal as $927. (b)Deposits in transit not recorded by bank, $1,500. (c)Bank debit memorandum for service charges, $75. (d)Bank credit memorandum for note collected by bank, $8,550, including $150 interest. (e)Bank debit memorandum for $654 NSF (not-sufficient-funds) check from Varrat White, a customer. (f)Checks outstanding, $6,600.