Merrifield Lawn Care's bank statement at August 31 showed an ending balance of $23,737.09. The unadjusted cash account balance for Merrifield is $20,277.20. The following data were gathered by Merrifield's accountant: • Check number 2143 was correctly written for $302. It was recorded in the company's books as $320 for utilities. • Outstanding checks as of August 31: $7,148.93 • NSF check from customer: $74.04 Debit memo related to the returned deposit: $8.00 • Credit memo related to Interest earned: $10.00 • Deposits in transit: $3,635.00 Required: a. Prepare a bank reconciliation for Merrifield Lawn Care at August 31. b. Indicate how each of the required adjusting entries Impact the financial statements. Complete this question by entering your answers in the tabs below.
Merrifield Lawn Care's bank statement at August 31 showed an ending balance of $23,737.09. The unadjusted cash account balance for Merrifield is $20,277.20. The following data were gathered by Merrifield's accountant: • Check number 2143 was correctly written for $302. It was recorded in the company's books as $320 for utilities. • Outstanding checks as of August 31: $7,148.93 • NSF check from customer: $74.04 Debit memo related to the returned deposit: $8.00 • Credit memo related to Interest earned: $10.00 • Deposits in transit: $3,635.00 Required: a. Prepare a bank reconciliation for Merrifield Lawn Care at August 31. b. Indicate how each of the required adjusting entries Impact the financial statements. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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