Jensen Company has just received the September 30, 2003, bank statement summarized in the following schedule:
|
Charges |
Deposits |
Balance |
|
|
Balance, September 1 |
$5,100 |
||
|
Deposits recorded during September |
$27,000 |
32,100 |
|
|
Checks cleared during September |
$27,300 |
4,800 |
|
|
NSF check, J. J. Jones |
50 |
4,750 |
|
|
Bank service charges |
10 |
4,740 |
|
|
Balance, September 30 |
4,740 |
||
Cash on hand (recorded on Jensen s books but not deposited) on September 1 and September 30 amounted to $200. There were no deposits in transit or checks outstanding at September 1, 2003. The cash account for September reflected the following:
|
Cash |
|||
|
Sept. 1 Balance |
5,300 |
Sept. Checks |
28,000 |
|
Sept. Deposits |
29,500 |
||
Answer the following questions. (Hint: It may be helpful to prepare a complete bank reconciliation.)
1. What is the ending balance per the cash account before adjustments?
2. What adjustments should be added to the depositor s books?
3. What is the total amount of the deductions from the depositor s books?
4. What is the total amount to be added to the bank s balance?
5. What is the total amount to be deducted from the bank s balance?