Houston Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2014 indicated the following:
Note $3,000 and interest $80 collected for Houston from a
customer of Houston's
3,080
An analysis of canceled checks and deposits and the records of Houston revealed the following items:
The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was
issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
A Prepare a bank reconciliation schedule at July 31, 2014, in proper form.
B What amount would Houston report on its balance sheet at July 31, 2014, for cash?

Question

Houston Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2014 indicated the following:
  Note $3,000 and interest $80 collected for Houston from a
customer of Houston's
3,080
An analysis of canceled checks and deposits and the records of Houston revealed the following items:
  The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was
issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
A Prepare a bank reconciliation schedule at July 31, 2014, in proper form.
B What amount would Houston report on its balance sheet at July 31, 2014, for cash?

Quizplus · Accepted Answer

The Answer of Houston Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2014 indicated the following:
  Note $3,000 and interest $80 collected for Houston from a
customer of Houston's
3,080
An analysis of canceled checks and deposits and the records of Houston revealed the following items:
  The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was
issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
A Prepare a bank reconciliation schedule at July 31, 2014, in proper form.
B What amount would Houston report on its balance sheet at July 31, 2014, for cash?