Financial Accounting I
Final Examination
Name:____________ Student ID:____________ Grade:_____________
I. Problem solving
1. Assume the following facts for Erich Company: the month-end bank statement shows a balance
of $27,200; outstanding checks totaled $2,000; a deposit of $8,000 is in transit at month-end;
and a check for $400 was erroneously charged against the account by the bank. What is the
correct cash balance at the end of the month?
2. At the end of the month, a company’s Cash account indicates a balance of $9,820. Upon
receiving a bank statement, the following amounts are used in the bank reconciliation: deposit in
transit, $2,400; outstanding checks, $926; bank service charge, $28; NSF check, $425; proceeds of a
customer’s note collected by the bank, $4,097. Given this information, what is the corrected Cash
balance?
3. The records of Derma Corporation show the following bank statement information for December:
a. Cash account balance, December 31, 2017, $67,330
b. Service charges for December, $80
