On august 31, year 1, the general ledger of a company shows a balance for cash of $7,844. cash receipts yet to be deposited into the checking account total $3,238, and checks written by the academy but not yet processed by the bank total $1,325. the company's balance of cash does not reflect a bank service fee of $25 and interest earned on the checking account of $36. these amounts are included in the balance of cash of $5,942 reported by the bank as of the end of august. required: 1. prepare a bank reconciliation to calculate the correct ending balance of cash on august 31, year 1. (amounts to be deducted should be indicated with a minus sign.)

Correct ending balance          7855

Explanation:

Cash                                           7844

Books  

Cash receipts pending on bank  -3238

Checks written                            1325

Banks  

Bank service fee                             -25

Interest earned                              36

Bank conciliation                           5942

Bank account                                  5942

                                         7844

Correct ending balance  7855

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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