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Kane Inc.'s bank statement from Western Bank at Au...

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Kane Inc.'s bank statement from Western Bank at August 31, 2010, gives the following information. Balance, August 1 $16,400 Bank debit memorandum: August deposits 73,000 Safety deposit box fee $ 25 Checks cleared in August 68,678 Service charge 50 Bank credit memorandum: Balance, August 31 20,692 Interest earned 45 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $16,900; receipts $77,000; disbursements $73,570; and balance, August 31, $20,330. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $5,000 and outstanding checks of $4,500. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. (a) Determine deposits in transit. $ (b) Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) $ (c) Complete a bank reconciliation at August 31. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1.) KANE INC. Bank reconciliation August 31, 2010 Cash balance per bank statement $ Add: Less: $ Cash balance per books $ Add: Less: $ $ (d) Journalize the adjusting entry to be made by Kane Inc. at August 31. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date Account/Description Debit Credit Aug. 31

 

Paper#12891 | Written in 18-Jul-2015

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