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Blairsville Corp ​
an Analysis of Canceled Checks and Deposits and the Bank

question 65

Essay

Blairsville Corp.prepares monthly bank reconciliations of its checking account balance.The bank statement for July 2016 indicated the following:  Balance, July 31,2016$63,400 Service charge for July 160 Interest earned during July 100 NSF check from Black Corp. (deposited by Blairsville) 1,150 Note ($3,000) and interest ($80) collected for Blairsville from a 3,080 customer of Blairsville’s \begin{array}{lr}\text { Balance, July } 31,2016 & \$ 63,400 \\\text { Service charge for July } & 160 \\\text { Interest earned during July } & 100 \\\text { NSF check from Black Corp. (deposited by Blairsville) } & 1,150 \\\text { Note }(\$ 3,000) \text { and interest }(\$ 80) \text { collected for Blairsville from a } & 3,080 \\\text { customer of Blairsville's } &\end{array}
An analysis of canceled checks and deposits and the records of Blairsville revealed the following items:  Checking account balance per Blairsville’s books $58,770 Outstanding checks as of July 314,630 Deposit in transit at July 311,780 Error in recording check #205 issued by Blairsville 90\begin{array}{lr}\text { Checking account balance per Blairsville's books } & \$ 58,770 \\\text { Outstanding checks as of July } 31 & 4,630 \\\text { Deposit in transit at July } 31 & 1,780 \\\text { Error in recording check \#205 issued by Blairsville } & 90\\\end{array}
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, 2016, in proper form.

B) What amount would Blairsville report on its balance sheet at July 31, 2016, for cash?

Understand the principles and benefits of value-based management.
Identify how successful companies integrate core values into their operations.
Comprehend the impact of diversity on organizational complexity and performance.
Understand the concept of workplace spirituality and its emphasis on inclusiveness and respect for diversity.

Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting the company's liquidity.

Total Assets Ratio

A financial metric used to assess a company's leverage, calculated by dividing its total liabilities by its total assets.

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