Question

No outstanding checks and no. Outstanding deposits and transactions were carried over from August. However there were deposits and transactions and checks outstanding at the end of September complete the following bank reconciliation prepare the journal entries that should be made. As a result of bankruptcy creation what should the balance in cash account be after reconciliation entries? What total amount of cash should the company report on September 30th balance sheet?

Answer 1

To prepare the journal entries for the bank reconciliation, adjust the cash balance to account for outstanding checks, deposits, and transactions. The adjusted cash balance should be reported on the balance sheet as the total amount of cash.

Step-by-step explanation:

The balance in the cash account after reconciliation entries should be adjusted to reflect the outstanding checks, deposits, and transactions that were carried over from August to September. To prepare the journal entries, we need to take into account the outstanding checks and the outstanding deposits and transactions. First, let's look at the outstanding checks. These are checks that were issued but have not yet cleared the bank. We need to subtract the amount of outstanding checks from the bank statement balance to get the adjusted cash balance.

Next, let's consider the outstanding deposits and transactions. These are deposits and transactions that were made but not yet recorded by the bank. We need to add the amount of outstanding deposits and transactions to the bank statement balance to get the adjusted cash balance. The balance in the cash account after reconciliation entries should reflect the adjusted cash balance.