You just joined XYZ Company as their junior accountant. Your first task is to prepare a bank reconciliation in good form at June 30. Your boss provides you with the bank statement and the following information from the accounting records at June 30 $$\begin{array} { | l | r | }
\hline \text { Non-sufficient funds (NSF) cheque retuned by bark } & \$ 350 \
\hline \text { Deposit in trarsit on June } 30 & \$ 1,015 \
\hline \text { Outstarding cheques at Jure } 30 & \$ 2,660 \
\hline \text { Balance per bark statement on June } 30 & \$ 16,280 \
\hline \text { Bark service charges } & \$ 35 \
\hline
\end{array}$$ Your review the bank statement at June 30 shows that a cheque incorrectly recorded by company as $2,500 was correctly recorded by the bank at $2,050. What is the unadjusted (opening) balance of cash in XYZ's general ledger on June 30?
A) $15,470
B) $14,285
C) $14,570
D) $16,703
E) $16,470

Question

You just joined XYZ Company as their junior accountant. Your first task is to prepare a bank reconciliation in good form at June 30. Your boss provides you with the bank statement and the following information from the accounting records at June 30 $$\begin{array} { | l | r | } 
\hline \text { Non-sufficient funds (NSF) cheque retuned by bark } & \$ 350 \
\hline \text { Deposit in trarsit on June } 30 & \$ 1,015 \
\hline \text { Outstarding cheques at Jure } 30 & \$ 2,660 \
\hline \text { Balance per bark statement on June } 30 & \$ 16,280 \
\hline \text { Bark service charges } & \$ 35 \
\hline
\end{array}$$ Your review the bank statement at June 30 shows that a cheque incorrectly recorded by company as $2,500 was correctly recorded by the bank at $2,050. What is the unadjusted (opening) balance of cash in XYZ's general ledger on June 30?
A) $15,470
B) $14,285
C) $14,570
D) $16,703
E) $16,470

Quizplus · Accepted Answer

To determine the unadjusted (opening) balance of cash in XYZ's general ledger on June 30, we need to start with the balance per the bank statement and make adjustments for any transactions that have not yet been recorded in the accounting records.

The balance per the bank statement at June 30 is $16,200. We then need to make the following adjustments:

1. Add outstanding deposits: According to the accounting records, there were $4,500 of deposits that had been made but had not yet been credited by the bank. Adding this to the bank balance gives us a total of $20,700.

2. Deduct outstanding cheques: According to the accounting records, there were three cheques outstanding at June 30 totaling $6,130. Deducting this from the bank balance gives us a total of $14,570.

3. Correct errors: The accounting records show that a cheque for $2,500 was incorrectly recorded as $2,050. We need to add $450 to the bank balance to correct this error, bringing the balance to $15,020.

Therefore, the unadjusted (opening) balance of cash in XYZ's general ledger on June 30 is $14,570. The correct option is C.

You Just Joined XYZ Company as Their Junior Accountant Your Review the Bank Statement at June 30 Shows That