A. At July 31, Ramirez Company has the following bank information: cash balance per bank $8,039, outstanding checks $691, deposits in transit $1,163, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31. B. Differences between when a company records a transaction and when the bank records the same transaction are called timing differences. True or False? C. When performing a bank reconciliation, checks outstanding are added back to the bank balance. True or False?
A. At July 31, Ramirez Company has the following bank information: cash balance per bank $8,039, outstanding checks $691, deposits in transit $1,163, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31. B. Differences between when a company records a transaction and when the bank records the same transaction are called timing differences. True or False? C. When performing a bank reconciliation, checks outstanding are added back to the bank balance. True or False?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A. At July 31, Ramirez Company has the following bank information:
cash balance per bank $8,039, outstanding checks $691, deposits in
transit $1,163, and a bank service charge $26.
Determine the adjusted cash balance per bank at July 31.
B. Differences between when a company records a transaction and
when the bank records the same transaction are called timing
differences. True or False?
C. When performing a bank reconciliation, checks outstanding are
added back to the bank balance.
True or False?
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