### Bank Reconciliation ExplanationXYZ Inc is preparing the October month-end Bank Reconciliation. The balance in the cash ledger on October 31 was $1,900. Some adjustments to this cash ledger balance were recorded on the Bank Reconciliation Report, as follows:- **Bank service charge**: $55- **NSF cheque**: $375- **Cheque #40 correction**: This cheque was correctly written and processed for $3,030; however, the XYZ bookkeeper recorded the cheque amount as $3,300.**Task:**What is the adjusted cash balance for October 31, for the Bank Reconciliation Report? Show your basic math.#### Solution:1. **Initial Cash Ledger Balance**: $1,9002. **Adjust for Bank Service Charge**: - Subtract $55 (service charge) - New balance: $1,900 - $55 = $1,8453. **Adjust for NSF Cheque**: - Subtract $375 (NSF cheque) - New balance: $1,845 - $375 = $1,4704. **Adjust for Cheque #40 Error**: - Difference: $3,300 (recorded) - $3,030 (actual) = $270 - Add $270 (since $270 was recorded as an extra deduction) - New balance: $1,470 + $270 = $1,740**Adjusted Cash Balance**: $1,740

Bank reconciliation statement is the one which is prepared in order to reconcile the errors in…

XYZ Inc is preparing the October month-end Bank Reconciliation. The balance in the cash ledger on October 31 was $1,900. Some adjustments to this cash ledger balance were recorded on the Bank Reconciliation Report, as follows: • Bank service charge $55 NSF cheque: $375 • Cheque # 40 was correctly written and processed for $3,030 however the XYZ bookkeeper recorded the cheque amount for $3,300. What is the adjusted cash balance for October 31, for the Bank Reconciliation Report? Show your basic math.

XYZ Inc is preparing the October month-end Bank Reconciliation. The balance in the cash ledger on October 31 was $1,900. Some adjustments to this cash ledger balance were recorded on the Bank Reconciliation Report, as follows: • Bank service charge $55 NSF cheque: $375 • Cheque # 40 was correctly written and processed for $3,030 however the XYZ bookkeeper recorded the cheque amount for $3,300. What is the adjusted cash balance for October 31, for the Bank Reconciliation Report? Show your basic math.

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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