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Unformatted text preview: Robert MacRae (260357622) Professor: Catherine Fortin Accounting Pre Class Problems – Chapter 6: 6-16) GRACE HO BANK RECONCILIATION For the month end Balance per the ledger $1,287.00 Add: Deposit that wasn't recorded 100.00 Deduct: Service charge XX.XX Cheque recorded for wrong amount (18.00) Cheque returned for insufficient funds (50.00) NSF cheque fee (15.00) Cash Balance $1,304.00 Balance per the bank $1,543.00 Deduct: Uncleared cheques (251.00) Bank Balance $1,292.00 Difference Between Cash Balance and Bank Balance = 1304 – 1292 = $12 ∴ The bank service charge must be $12 6-21) a) Investment Cost ($) Market ($) Green Company 10,000 9,500 White Company 10,000 11,000 20,000 20,500 ∴ These investments will be reported on the December 31 balance sheet at the fair market value of $20,500 b) On the income statement an unrealized gain of $500 will be recognized. This amount would be reported to show the increase in the value of the firm’s investments....
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