CP2--Submit in Canvas
Use the data to set up a Trial Balance and answer the 5 questions.
\table[[Cash,$30,000],[Accounts receivable,22,000],[Supplies,1,000],[Prepaid rent,6,000],[Building CP2--Submit in Canvas
Use the data to set up a Trial Balance and answer the 5 questions.
\table[[Cash,$30,000],[Accounts receivable,22,000],[Supplies,1,000],[Prepaid rent,6,000],[Building
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CP4--Submit in Canvas
At the end of the month, the company's general ledger shows a checking account balance of
$22,000 but the bank reported the checking account balance as
$16,860 on the bank statement.
Comparing the company's cash ledger with the bank statement revealed the following: Cash receipts of
$12,000 and checks written by the company for
$7,000 have not cleared the bank yet. The bank charged
$50 in service fees,
$10 interest was earned on the bank account, and an automatic withdrawal of
$2,500 for rent had cleared the bank. In addition, the bank had collected a
$3,000 note receivable on the company's behalf.
The company identified two errors. The bank made an error, the bank subtracted
$1,000 from the company bank account for a
$100 check the company wrote. Also, the company made an error when they recorded a deposit they made. The deposit was
$900 but the company recorded it as
$600 in the company ledger.
Answer the following based on performing a bank reconcliation for the company.
How should the company treat the bank error? (add/sub from bank/general ledger)
How should the company treat the company error? (add/sub from bank/ general ledger)
What is the general ledger cash balance before reconciliation?
$
q,
What is the bank statement balance before reconcliation?
$
q,
What is the general ledger balance after reconciliation?
$
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