Construct a Bank Reconciliation for Players Sporting Goods as of July

question 89

Essay

Construct a bank reconciliation for Players Sporting Goods as of July 31, 2019, from the following information:
Ending general ledger balance    $420
Ending bank statement balance    320
Deposits in transit                         220
Outstanding cheques                   155
Bank service charge (debit memo) 35

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Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be useful for the purpose it was acquired by a company.

Net Present Values

A method used in capital budgeting to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of future cash flows.

Present Value

The contemporary value of future financial inflows or a lump sum, adjusted for a particular rate of return.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest of previous periods.