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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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SOLUTION TO EXERCISE 7-7

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*To add to the complexity of this exercise, you could be asked to solve for the $17,780 cash balance per bank statement. The computation would be as follows:

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**To add to the complexity of this exercise, you could be asked to solve for the $19,404 cash balance per books at October 31, 2014. The computation would be as follows:

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An alternate approach to solving for the balance per books before adjustment is illustrated in the Solution to Exercise 7-5 part (b) 2.

TIP: Keep in mind that deposits in transit and outstanding checks are reconciling items but do not require adjusting entries on either the bank's books or the depositor's books.

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