(Bank Reconciliation and Adjusting Entries) Aragon Company has just received the August 31, 2012, bank statement, which is summarized below.
|
County National Bank |
Disbursements |
Receipts |
Balance |
|
Balance, August 1 |
$9,369 |
||
|
Deposits during August |
$32,200 |
41,569 |
|
|
Note collected for depositor, including $40 interest |
1,040 |
42,609 |
|
|
Checks cleared during August |
$34,500 |
8,109 |
|
|
Bank service charges |
20 |
8,089 |
|
|
Balance, August 31 |
8,089 |
The general ledger Cash account contained the following entries for the month of August.
|
Cash |
|||
|
Balance, August 1 |
10,050 |
Disbursements in August |
35,403 |
|
Receipts during August |
35,000 |
||
Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.
Instructions
(a) Prepare a bank reconciliation dated August 31, 2012, proceeding to a correct balance.
(b) Prepare any entries necessary to make the books correct and complete.
(c) What amount of cash should be reported in the August 31 balance sheet?