On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,944. Cash receipts yet to be deposited into the checking account total $3,338, and checks written by the academy but not yet processed by the bank total $1,425. The company's balance of cash does not reflect a bank service fee of $35 and interest earned on the checking account of $46. These amounts are included in the balance of cash of $6,042 reported by the bank as of the end of August.

Required:

Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

Question

Business

Edward Orozco

8 January, 20:38

On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,944. Cash receipts yet to be deposited into the checking account total $3,338, and checks written by the academy but not yet processed by the bank total $1,425. The company's balance of cash does not reflect a bank service fee of $35 and interest earned on the checking account of $46. These amounts are included in the balance of cash of $6,042 reported by the bank as of the end of August.

Required:

Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

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Answers (1)

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Hayden Mahoney · Answer 1

The Dean Acting Academy Bank Reconciliation on August 31, 2021 is given below.

The Dean Acting Academy

Bank Reconciliation

August 31, 2021

Bank's Cash Balance Company's Cash Balance

Per bank statement $6,042 Per general ledger $7,944

Deposits outstanding + 3,338 Service fees - 35

Checks outstanding - 1,425 Interest earned + 46

Bank balance per Company balance

reconciliation $7,955 per reconciliation $7,955