The balance in Happ Inc.'s general ledger Cash account was $71,580 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $63,780. Reconciling items included deposits in transit, $6,200; bank service charges, $120; NSF check written by a customer and returned with the bank statement, $2,850; outstanding checks, $1,280; and interest credited to the account during September but not recorded on the company's books, $90. Required: a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ Inc. at September 30. (Use amounts with + for increases and amounts with - for decreases.) Assets Cash Accounts receivable 2,850 Balance Sheet Liabilities Stockholders' Equity ← - b. What is the amount of cash to be included in the September 30 balance sheet for the company's bank account? Net income

The balance in Happ Inc.'s general ledger Cash account was $71,580 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $63,780. Reconciling items included deposits in transit, $6,200; bank service charges, $120; NSF check written by a customer and returned with the bank statement, $2,850; outstanding checks, $1,280; and interest credited to the account during September but not recorded on the company's books, $90. Required: a. Show the reconciling items in a horizontal model that should be prepared to reflect the reconciling items for Happ Inc. at September 30. (Use amounts with + for increases and amounts with - for decreases.) Assets Cash Accounts receivable 2,850 Balance Sheet Liabilities Stockholders' Equity ← - b. What is the amount of cash to be included in the September 30 balance sheet for the company's bank account? Net income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The cash account for Norwegian Medical Co. at April 30 indicated a balance of $12,195. The bank statement indicated a balance of $13,760 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $4,950. A deposit of $5,160, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,680 on a $2,550 note, including interest of $130. A check for $660 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $600. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $90 had been erroneously charged by the bank as $900. Bank service charges for April amounted to $35. Required: Question Content Area 1. Prepare a bank reconciliation. Norwegian Medical Co.Bank ReconciliationApril 30 Cash balance according to bank statement…
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