The Following Information Is Needed to Reconcile the Cash Balance

question 23

Essay

The following information is needed to reconcile the cash balance for Fire Steel Inc.
• A deposit of $5,800 is in transit.
• Outstanding checks total $1,500.
• The book balance is $6,800 at February 28, 2013.
• The bookkeeper recorded a $1,740 check as $17,400 in payment of the current month's rent.
• The bank balance at February 28, 2013 was $18,000.
• A deposit of $400 was credited by the bank for $4,000.
• A customer's check for $3,700 was returned for nonsufficient funds.
• The bank service charge is $60.
Based on this information, prepare a bank reconciliation for Fire Steel Inc. as of February 28, 2013.

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Definitions:

Paid Vacations

Employer-provided benefits that allow employees to take time off work with pay.

Flexible Sick-time

Policies that allow employees discretion in how they use their allotted time off for health-related issues.

Portable Benefits

Employee benefits that can be retained and transferred between different jobs or employment statuses.

Mobile Work Force

Employees who are equipped to work from various locations outside of a traditional office setting, facilitated by technology.