The Following Information Is Available to Reconcile Young Co

question 50

Essay

The following information is available to reconcile Young Co.'s book balance of cash with its bank statement cash balance as of April 30. The April 30 cash balance according to the accounting records is $58,176, and the bank statement cash balance for that date is $64,005.
a. On April 30, the bank issued a credit memorandum for $53 interest earned on Young's account.
b. A credit memorandum indicates that the bank collected $9,970 cash on a note receivable for Young, and credited the balance to the company's Cash account. Young did not record this transaction before receiving the statement.
c. A debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer. The bank assessed a $25 fee for processing it.
d. Young's April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30 bank statement.
e. Young's April 30 cash disbursements journal indicates that Check No. 1837 for $584 and Check No. 1840 for $1,219 were both written and entered in the accounting records, but are not among the canceled checks.
Required: Prepare the bank reconciliation for this company as of April 30.

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Definitions:

Social Judgment

The process by which people make evaluations or judgments about other people, events, or ideas based on social and cultural norms.

Rational Decision Making

A multi-step process for making logically sound decisions that aims to follow the orderly path from problem identification through solution.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, involved in decision making, problem solving, and controlling behavior.

Proper Sequence

The correct order in which events, actions, or processes should occur based on logical progression or established rules.