Question

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31.

a. On July 31, the company's Cash account shows a balance of $X.
b. The bank statement, however, indicates a balance of $Y.
c. Outstanding checks amount to $Z.
d. There's an unrecorded deposit of $W.

Answer 1

To reconcile the book balance of cash with the bank statement cash balance, use the formula: Book Balance + Deposits - Outstanding Checks = Bank Statement Balance.

Step-by-step explanation:

The task at hand requires reconciling Branch Company's book balance of cash with its bank statement cash balance. In order to do this, we need to take into account the provided information:

• The company's Cash account shows a balance of $X on July 31.
• The bank statement indicates a balance of $Y.
• There are outstanding checks amounting to $Z.
• There's an unrecorded deposit of $W.

To reconcile the balances, we can use the following formula:

Book Balance + Deposits - Outstanding Checks = Bank Statement Balance

In this case, the formula would be:

$X + $W - $Z = $Y

You can plug in the values for $X, $Y, $Z, and $W to calculate the missing balance.