Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2019 indicated the following: The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.
A)Prepare a bank reconciliation in proper form for October 31, 2019.
B)What amount would Diamond report its cash balance on its October 31, 2019, balance sheet?

Question

Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2019 indicated the following:

The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.
A)Prepare a bank reconciliation in proper form for October 31, 2019.
B)What amount would Diamond report its cash balance on its October 31, 2019, balance sheet?

Quizplus · Accepted Answer

The Answer of Diamond Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for October 2019 indicated the following:  The correct amount of check # 627 is $980, but it was recorded as a cash disbursement of $890. The check was issued to pay for merchandise purchased. The check was written correctly and appeared on the bank statement correctly.