Use the Information Below to Prepare a Bank Reconciliation for Doggy

question 59

Essay

Use the information below to prepare a bank reconciliation for Doggy Day Care Company for the month of January.
• Outstanding checks as of January 30 amounted to $2,704.
• Deposits in transit as of January 30 amounted to $1,879.
• The ending balance per the January bank statement is $36,482.
• The bank statement shows that Doggy Day Care earned $150 of interest on its bank balance for the month of January.
• The bank mistakenly recorded a deposit of $2,800 as $280 on January 15.
• The Doggy Day Care pays its insurance of $986 by EFT.
• Bank collected a note, for $3,000.
• There was a NSF check on the bank statement for $368
• The ending cash balance per the books for January before any adjustments was $36,381.

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Definitions:

Economic Profits

The extra amount businesses earn after subtracting all of their costs, including opportunity costs.

Long Run

A period in which all factors of production and costs are variable, allowing for all adjustments to be made within a market or economy.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, brand, and price.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a loss of total societal welfare.