Bal per bank stmt xx bal per checkbook xx add

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Bal per bank stmt Xx Bal per checkbook Xx Add deposits in transit +xx Add acct rec collections +xx Less outstanding checks -xx Less service charges -xx Less NSF checks -xx Add interest earned (revenue) +xx Adjusted bal per bank = xx Adjusted bal per books = xx These balances will be the same! 4-3
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Chapter 04 - Internal Controls, Accounting for Cash, and Ethics Practice Bank Reconciliation The bank statement for Greenbrier Furniture Stores showed a balance of $64,535 as of November 30. The unadjusted balance in the general ledger cash account at November 30 was $59,345. An examination of the bank statement disclosed the following information. 1. Outstanding checks totaled $24,598. 2. The bank had issued a $157 credit memo for interest deposited into Greenbrier’s account. 3. The bank had deducted $469 for two non-sufficient funds (NSF) checks. 4. The bank statement enclosures included a debit memo for $36 the bank had deducted from Greenbrier’s account to pay for new checks. 5. Deposits in transit were $19,060. Required a. Reconcile the balance shown on the bank statement and the unadjusted balance of the company’s cash account to the true cash balance. b. What is the amount of cash that should be reported on Greenbrier’s balance sheet as of November 30? Bal per bank stmt $64,535 Bal per checkbook $59,345 Less Outstanding checks -$24, 598 Interest earned +$157 Add deposits in transit +$19,060 Less NSF checks -$469 Less service charge -$36 Adjusted bal per bank $58, 997 Adjusted bal per books $59,997 Service charge Assets Liability Equity Cash Retained earnings -$36 -$36 service charge expense NSF check Assets Liability Equity Acct Rec Cash + $469 - $469 If a company has NSF checks of $469 on the bank reconciliation, what is the impact on the accounting equation?
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