Blairsville Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for...
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Finance
Blairsville Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2016 indicated the following:
Balance, July 31, 2016
$63,400
Service charge for July
160
Interest earned during July
100
NSF check from Black Corp. (deposited by Blairsville)
1,150
Note ($3,000) and interest ($80) collected for Blairsville from a customer of Blairsvilles
3,080
An analysis of canceled checks and deposits and the records of Blairsville revealed the following items:
Checking account balance per Blairsvilles books
$58,770
Outstanding checks as of July 31
4,630
Deposit in transit at July 31
1,780
Error in recording check #205 issued by Blairsville
90
The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
a. Prepare a bank reconciliation at July 31, 2016, in proper form.
b. What amount would Blairsville report on its balance sheet at July 31, 2016, for cash?$
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