ACCT1501 Practice Exam Questions & Solutions
QUESTION 1 (6 Marks)
The following information is given about Nadak Co.:
The August 31 balance shown on the bank statement is $9,810.
There is a deposit in transit of $1,260 at August 31.
Outstanding cheques at August 31 totalled $1,890.
A bank charge of $40 for cheques was made to the account during August, as
shown on the bank statement. Although the company was expecting a charge,
its amount was not known until the bank statement arrived.
In the process of reviewing the cheques, it was determined that a cheque
issued to a supplier in payment of accounts payable of $361 had been recorded
The August 31 balance in the general ledger Cash account, before
reconciliation, is $8,950.
Prepare a bank reconciliation as of August 31, 2011.
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