The Bank Statement for Farmer Co

question 59

Essay

The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:?
(a)Cash sales of $742 were erroneously recorded in the cash receipts journal as $724.
(b)Deposits in transit not recorded by bank, $425.
(c)Bank debit memo for service charges, $35.
(d)Bank credit memo for note collected by bank, $2,475 including $75 interest.
(e)Bank debit memo for $256 NSF
(not sufficient funds) check from Janice Smith, a customer.
(f)Checks outstanding, $1,860.

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Definitions:

Immature Printing

Refers to the early stages of writing development in children, where text may lack proper form or structure.

Invented Spelling

A developmental stage in children's writing where they spell words based on how they sound rather than the correct spelling conventions.

Spontaneity

The quality of being performed or occurring as a result of sudden inner impulse or inclination without premeditation.

Whole-language Approach

An instructional philosophy on reading that emphasizes the use of context and visual cues to recognize words, arguing for immersion in text to promote literacy.