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Assign_5_-_Solutions_to_Practice_Problem

Addition to the balance per companys records 3 7 d

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Addition to the balance per company’s records: (3), (7) d. Deduction from the balance per company’s records: (1), (2) Ex. 7–17 (1), (2), (3), (7) The preceding additions and deductions to the cash balance according to the company’s records require journal entries in the company’s records. Additions and
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deductions to the cash balance according to the bank’s records do not require the company to record journal entries.
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Ex. 7–18 a. MAPLEWOOD CO. Bank Reconciliation July 31, 20— Cash balance according to bank statement ................................. $16,230 Add deposit in transit, not recorded by bank ................................ 2,950 $19,180 Deduct outstanding checks .......................................................... 3,180 Adjusted balance .......................................................................... $16,000 Cash balance according to company’s records ........................... $15,600 Add error in recording check ........................................................ 450 $16,050 Deduct bank service charge ......................................................... 50 Adjusted balance .......................................................................... $16,000 b. $16,000; the adjusted balance from the bank reconciliation should be reported on the July 31 balance sheet for Maplewood Co. c. Yes, the bank reconciliation must always balance (reconcile) to an adjusted balance. Ex. 7–19 Cash .............................................................................. 450 Accounts Payable ................................................... 450 Miscellaneous Administrative Expense ......................... 50 Cash ....................................................................... 50
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Prob. 7–3A 1. ONLINE MEDICAL CO. Bank Reconciliation June 30, 2012 Cash balance according to bank statement ....................... $10,760 Add: Deposit of June 30, not recorded by bank $4,000
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