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WileyPlus Question
Subject
Business Finance
Question Description
Exercise 7-11 (Part Level Submission)
Metlock, Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information.
Balance, August 1 $18,600 Bank debit memorandum:
August deposits 71,200 Safety deposit box fee $ 50
Checks cleared in August 68,653 Service charge 75
Bank credit memorandum: Balance, August 31 21,092
Interest earned 70
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,900; receipts $74,200; disbursements $73,545; and balance, August 31, $19,555. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,825 and outstanding checks of $4,525. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.
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