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The balance in Jahapp Inc.’s Cash account was $6,320 at April 30, 2019 before reconciliation. The April 30, 2019 balance shown in the bank statement was $4,590. Reconciling items included deposits in transit, $2,600; bank service charges, $140; outstanding checks, $950; and interest credited to the bank account during the month but not recorded on the company’s books, $60. The reconciled balance at April 30, 2019 is:__________

a. $6,380.
b. $6,240.
c. $7,190.
d. $7,190
e. $6,100.

User Tlorin
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1 Answer

5 votes

Answer:

b. $6,240.

Step-by-step explanation:

The reconciliation statement reconciles the bank statement balance to the cash book balance. The reconciled balance in the cash account is derived after considering all transactions that happened during the year that should have been recognized but were yet to.

Given the following Reconciling items;

deposits in transit, $2,600; This has been captured in the books and need not be adjusted for.

bank service charges, $140; This is yet to be recorded in the books hence it will be deducted from the cash balance.

outstanding checks, $950; This has been recognized in the books hence no further adjustments are required.

and interest credited to the bank account during the month but not recorded on the company’s books, $60.; This will be added to the cash balance

Hence reconciled balance

= $6,320 - $140 + $60

= $6,240

User Ssk
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