Ch+7+Pr+9 2 - (85 .00 ) Corrected cash balance $13,011 .87...

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Problem 7-9 Requirement 1
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Problem 7-9 (concluded) Requirement 2 To correct error in recording cash disbursement for rent. Computation of balance per books: Balance per bank statement $14,632.12 Add: Deposits outstanding 575.00 Deduct: Checks outstanding (1,320.25) Error in recording rent check (18.00) Add: Automatic mortgage payment 450.00 Add: Bank service charges 14.00 Deduct: Deposit credit to company’s account in error (875.00) Add: NSF check charge 85 .00 Balance per books $13,542 .87 Step 1: Bank Balance to Corrected Balance Balance per bank statement $14,632.12 Add: Deposits outstanding 575.00 Deduct: Bank error - deposit incorrectly credited to company account (875.00) Checks outstanding (1,320 .25 ) Corrected cash balance $13,011 .87 Step 2: Book Balance to Corrected Balance Balance per books $13,542.87 Add: Error in recording rent check 18.00 Deduct: Automatic mortgage note payment (450.00) Service charges (14.00) NSF checks
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Unformatted text preview: (85 .00 ) Corrected cash balance $13,011 .87 Cash. .............................................................. 18 .................................................. Rent expense ................................................................... 18 To record credits to cash revealed by the bank reconciliation. Interest expense. ............................................ 350 Mortgage note payable. ................................. 100 Miscellaneous expense (bank service charges) 14 Accounts receivable (NSF checks). ............... 85 ............................................................... Cash ................................................................. 549 Requirement 3 Checking account balance $13,011.87 Petty cash 200.00 U.S. treasury bills 5,000 .00 Total cash and cash equivalents $18,211 .87...
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Ch+7+Pr+9 2 - (85 .00 ) Corrected cash balance $13,011 .87...

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