Using the Following Data, Compute the Book Balance for Backwater

question 47

Essay

Using the following data, compute the book balance for Backwater Services before the preparation of a bank reconciliation on May 31, 2019:
- The bank statement reveals a balance of $5,642.
- Outstanding cheques on May 31, 2019, amount to $4,620
- The bank statement indicates service charges of $36.
- Deposits in transit on May 31, 2019, amount to $1,490.
- The bookkeeper mistakenly recorded a $21 cheque payment to a vendor as $210.
- A note had been collected by the bank for $1,000 plus $50 interest.

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