Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2021. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $55. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31.

Prepeare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021.

Debit Balance as per Cash Book - i - ii + iii = Credit Balance as per Passbook.

Explanation:

Bank Reconciliation Statement is a statement drawn at the end of accounting period, to adjust the mismatch between bak balance as per cashbook & passbook.

Debit Balance as per Cash Book = $ 22970

Less : Receipts added in cashbook, but not passbook = (1885)

Less : Bank service fee deducted from passbook, not cashbook = (55)

Add : Cheques written but not deducted from passbook = 1460

Credit Balance as per passbook = $ 22490

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.