Sally Rice is unable to reconcile the bank balance at January 31. Sally’s reconc

Question

Sally Rice is unable to reconcile the bank balance at January 31. Sally’s reconciliation is shown here.

41.63

$5,280.57

966.00

$5,363.83

(a) What is the proper adjusted cash balance per bank?

(b) What is the proper adjusted cash balance per books?

(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

(To record bank service charge)

Cash balance per bank $4,676.20 Add: NSF check 646.00 Less: Bank service charge

41.63

Adjusted balance per bank

$5,280.57

Cash balance per books $4,974.20 Less: Deposits in transit 576.37 Add: Outstanding checks

966.00

Adjusted balance per books

$5,363.83

Explanation / Answer

a Bank Reco Jan 31 Details Cash balance as per bank                 4,676.20 Add Deposit in transit                    576.37 Less outstanding checks                    966.00 Adjusted balance as per bank                 4,286.57 b Cach Balance as per cash book                 4,974.20 Less : NSF                      646.00 Less Bank service charge                       41.63 Adjusted Cash Balance as per book                 4,286.57 c Journal entry   Date Account Title Dr $ Cr $ Jan 31. Cash                    646.00 Accounts Receivable                    646.00 ( recording NSF ) Cash                         41.63 Bank Charges                       41.63 ( Bank service charge recording)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.