EXERCISE 7-29 The following data were gathered to use in reconciling the bank st

Question

EXERCISE 7-29

The following data were gathered to use in reconciling the bank statement of Build-A-Lot:

Balance per Bank $14,355
Balance per company record $14,010
Bank Service Charges $80
Deposits in transit $4,100
NSF checks $775
Outstanding Checks $ 5,300

Required:
(1) What is the adjusted balance on the bank reconciliation?
$



(2) Journalize any necessary entries for Build-A-Lot based on the bank reconciliation.


-Select-
Petty Cash, Accounts Payable, Accounts Receivable, Cash Short and Over Cash
-Select-
Petty Cash, Miscellaneous Expense, Cash Short and Over Cash, Sales
-Select-
Accounts Receivable, Miscellaneous Expense, Cash Short and Over Cash, Petty Cash



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Explanation / Answer

1. Balance as per bank $14,355 Add: Deposits intransit $4,100 Less: Outstanding checks ($5,300) Adjusted bank balance: $13,155 Balance as per company record $14,010 Less: Service charge ($80) Less: NSF checks ($775) Adjusted cash balance $13,155 2. Particulars Debit Credit Miscellaneous Expense $80         Cash $80 (To record bank service charge) Accounts receivable $775        Cash $775 (To record NSF checks) Thank you..... Balance as per bank $14,355 Add: Deposits intransit $4,100 Less: Outstanding checks ($5,300) Adjusted bank balance: $13,155

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