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  3. organic food co.'s cash account shows a $6,300 deb

Organic Food Co.'s cash account shows a $6,300 debit balance and its bank statement shows...

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Accounting

Organic Food Co.'s cash account shows a $6,300 debit balance and its bank statement shows $5,720 on deposit at the close of business on August 31.

  1. August 31 cash receipts of $2,040 were placed in the banks night depository after banking hours and were not recorded on the August 31 bank statement.
  2. The bank statement shows a $200 NSF check from a customer; the company has not yet recorded this NSF check.
  3. Outstanding checks as of August 31 total $1,920.
  4. In reviewing the bank statement, an $160 check written by Organic Fruits was mistakenly drawn against Organic Foods account.
  5. The August 31 bank statement lists $100 in bank service charges; the company has not yet recorded the cost of these services.

Prepare a bank reconciliation using the above information.
ORGANIC FOOD CO.
Bank Reconciliation
August 31
Bank statement balance Book balance
Add: Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance

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