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Argosy University/ Phoniex University/
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Phoniex University
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EX 8-21 Bank reconciliation
An accounting clerk for Muskegon Co. prepared the following bank reconciliation:
|
Muskegon Co. |
 |  |
|
Bank Reconciliation |
 |  |
|
May 31, 2012 |
 |  |
|
Cash balance according to company’s records |
 |
$5,110 |
|
Add: Outstanding checks |
$2,500 |
 |
|
Error by Muskegon Co. in recording Check |
 |  |
|
No. 2219 as $810 instead of $180 |
630 |
 |
|
Note for $8,000 collected by bank, including interest |
8,320 |
11,450 |
| Â | Â |
$16,560 |
|
Deduct: Deposit in transit on May 31 |
$5,200 |
 |
|
Bank service charges |
60 |
5,260 |
|
Cash balance according to bank statement |
 |
$11,300 |
a. From the data in the above bank reconciliation, prepare a new bank reconciliation for Muskegon Co., using the format shown in the illustrative problem.
b. If a balance sheet were prepared for Muskegon Co. on May 31, 2012, what amount should be reported for cash?
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