Question: 57 Preparing a bank reconciliation: The cash account of Safety Security Systems reported a balance of $2,450 on December 31, 2016. There were outstanding checks totaling $1,700 and a December 31 deposit in transit of $300. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $4,460. Included in the bank balance was a collection of $620 on account from Brendan Ballou, a Safety Security Systems customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Safety earned on its bank balance. Prepare Safety Security System's bank reconciliation at December 31. Safety Security Systems Bank Reconciliation December 31, 2016 Bank Balance, December 31, 2016 Add: Deposit in transit Less: Outstanding checks Adjusted bank balance, December 31, 2016 Book $4,460 Balance, December 31, 2016 Add: Bank collection from customer Interest Revenue Less: Service charge Adjusted book balance, December 31, 2016 $2,450
Question: 57 Preparing a bank reconciliation: The cash account of Safety Security Systems reported a balance of $2,450 on December 31, 2016. There were outstanding checks totaling $1,700 and a December 31 deposit in transit of $300. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $4,460. Included in the bank balance was a collection of $620 on account from Brendan Ballou, a Safety Security Systems customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Safety earned on its bank balance. Prepare Safety Security System's bank reconciliation at December 31. Safety Security Systems Bank Reconciliation December 31, 2016 Bank Balance, December 31, 2016 Add: Deposit in transit Less: Outstanding checks Adjusted bank balance, December 31, 2016 Book $4,460 Balance, December 31, 2016 Add: Bank collection from customer Interest Revenue Less: Service charge Adjusted book balance, December 31, 2016 $2,450
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
Related questions
Question
Want Correct Answer with calculation and explanation of the question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College