Problem 4-1B (Algo) Prepare a bank reconciliation and discuss cash procedures (LO4-4, 4-5) At the...
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Problem 4-1B (Algo) Prepare a bank reconciliation and discuss cash procedures (LO4-4, 4-5) At the end of February, Williams Productions' accounting records reveal a balance for cash equal to $19,140. However, the balance of cash in the bank at the end of February is only $2,655. Williams is concerned and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: In addition, during February the company's accountant wrote a check to one of its suppliers for $135. The check was recorded correctly in the company's records for $135 but processed incorrectly by the bank for $1,350. Williams has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $2,800 was established during February. This amount was withdrawn from the checking account but not recorded. Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.)
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Problem 4-1B (Algo) Prepare a bank reconciliation and discuss cash procedures (LO4-4, 4-5) At the end of February, Williams Productions' accounting records reveal a balance for cash equal to $19,140. However, the balance of cash in the bank at the end of February is only $2,655. Williams is concerned and asks the company's accountant to reconcile the two balances. Examination of the bank statement and company records at the end of February reveals the following information: In addition, during February the company's accountant wrote a check to one of its suppliers for $135. The check was recorded correctly in the company's records for $135 but processed incorrectly by the bank for $1,350. Williams has contacted the bank, which has agreed to fix the error. Finally, a petty cash fund of $2,800 was established during February. This amount was withdrawn from the checking account but not recorded. Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) Required: Calculate the correct ending balance of cash at the end of February. (Amounts to be deducted should be indicated with a minus sign.) 