EX 8-21 Bank reconciliation
An accounting clerk for Muskegon Co. prepared the following bank reconciliation:
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Muskegon Co. |
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Bank Reconciliation |
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May 31, 2012 |
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Cash balance according to company’s records |
$5,110 |
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Add: Outstanding checks |
$2,500 |
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Error by Muskegon Co. in recording Check |
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No. 2219 as $810 instead of $180 |
630 |
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Note for $8,000 collected by bank, including interest |
8,320 |
11,450 |
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$16,560 |
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Deduct: Deposit in transit on May 31 |
$5,200 |
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Bank service charges |
60 |
5,260 |
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Cash balance according to bank statement |
$11,300 |
a. From the data in the above bank reconciliation, prepare a new bank reconciliation for Muskegon Co., using the format shown in the illustrative problem.
b. If a balance sheet were prepared for Muskegon Co. on May 31, 2012, what amount should be reported for cash?