Question

Use the following to answer questions 21 - 25 TJ Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks Date Date Amount No Amount 115 3-Oct $30,000 4-Oct $20,000 115 10-Oct 47,500 6-Oct 18,000 115 17-Oct 44,000 3 15-Oct 42,000 115 24-Oct 39,500 16-Oct 10,000 115 Cash receipts 10/26-10/27 8.000 20-Oct 2,500 $169.00 115 1,700 115 22-Oct 29-Oct 7 32,000 $126,200 Balance on October 1 Receipts Disbursements Balance on October 31 $32,000 169,000 126,200 $74,800

Answer 1

Answer:

To answer questions 21 to 25, we prepare below the bank reconciliation based on information given:

$74,800 Bank statement balance Add: Deposit in transit Bank Reconciliation October. 31 $109,405 Book balance of cash Add: $8,000 Collection of notes receivable (including Interest of $100) Interest Income Error in crediting check of $10000 recorded as $1000 Deduct: ($1,700) NSF check ($32,000) Bank service Charge (NSF charges and maintenance fee) Rent Expense $83,705 Reconciled Balance $3,100 $35 $9,000 Deduct: Outstanding checks: Check # 1156 Check #1157 ($1,000) ($30) ($2,200) $83,705 Reconciled Balance

Answer 21:

$33,700 Of the total checks written during the month what amount should be deducted from the bank balance during reconciling the bank account

Explanation

Check # 1156 and Check # 1157 were outstanding. Total amount outstanding is (1700 + 32000 =) $33,700.

Please refer bank reconciliation given above.

Answer 22:

$8,000 of the cash receipts what amount should be added to the bank balance during reconciling the bank account.

Explanation:

Please refer bank reconciliation given above.

Answer 23:

Correct answer is:

A. add $9,000 to the company cash account.

Explanation:

Please refer to bank reconciliation above. Option A is correct and other options B, C and D are incorrect.

Answer 24:

$8,905 The total amount needed to reconcile the company cash account was:

Explanation:

Please refer to bank reconciliation as above.

The total amount needed to reconcile the company cash account = 3100 + 35 + 9000 - 1000 - 30 - 2200 = $8,905

Answer 25:

$83,705 What was the company's cash balance after the reconciliation.

Explanation:

Please refer to bank reconciliation as above.