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On May 31, Money Corporation's Cash account showed a balance of $16,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding$2,950 Deposits outstanding $2,500 NSF check $240 Service Charges $80 Error: Money Corp. wrote a check for $80 but recorded it incorrectly for $800. What is the amount of cash that should be reported in the company's balance sheet as of May 31?

Respuesta :

TomShelby

Answer:

cash balance tobe reported in the balance sheet 16,880

Explanation:

cash account   16,000

NSF check            240

service charge      (80)

amend mistake:    720

adjusted:          16,880‬

the check oustanding and the deposits in-transit are adjustment for the bank balance. not the firm cash accounting

We must look for data which wasn't know until receive the bank statement.

Those are:

the non-sufficient funds

the service charge

and the accounting mistake

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