Sky Company is unable to reconcile the bank balance at January 31. Sky’s reconci
ID: 2450125 • Letter: S
Question
Sky Company is unable to reconcile the bank balance at January 31. Sky’s reconciliation is as follows.
Cash balance per bank $5,300
Add: NSF check $1,570
Less: Bank service charge $35
Adjusted balance per bank $6,835
Cash balance per books $5,705
Less: Deposits in transit $750
Add: Outstanding checks $1,950
Adjusted balance per books $6,905
Which is the correct bank reconciliation?
Cash balance per bank statement
$5,300
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$2,600
Cash balance per books
$5,705
NSF check
$1,570
Bank service charge
$35
Adjusted cash balance per books
$6,920
Cash balance per bank statement
$4,100
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$5,300
Cash balance per books
$5,705
NSF check
$1,570
Bank service charge
$35
Adjusted cash balance per books
$4,100
Cash balance per bank statement
$5,300
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$4,100
Cash balance per books
$5,705
NSF check
$1,570
Adjusted cash balance per books
$4,100
Sky Company is unable to reconcile the bank balance at January 31. Sky’s reconciliation is as follows.
Cash balance per bank $5,300
Add: NSF check $1,570
Less: Bank service charge $35
Adjusted balance per bank $6,835
Cash balance per books $5,705
Less: Deposits in transit $750
Add: Outstanding checks $1,950
Adjusted balance per books $6,905
Which is the correct journal entry?
Cash
$1,605
Accounts payable
$1,570
Service fee
$35
Accounts receivable
$1,570
Cash
$1,570
Miscellaneous expense
$35
Cash
$35
Service fee
$35
Accounts receivable
$1,570
Cash
$1,605
Sky Company is unable to reconcile the bank balance at January 31. Sky’s reconciliation is as follows.
Cash balance per bank $5,300
Add: NSF check $1,570
Less: Bank service charge $35
Adjusted balance per bank $6,835
Cash balance per books $5,705
Less: Deposits in transit $750
Add: Outstanding checks $1,950
Adjusted balance per books $6,905
Which is the correct bank reconciliation?
Cash balance per bank statement
$5,300
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$2,600
Cash balance per books
$5,705
NSF check
$1,570
Bank service charge
$35
Adjusted cash balance per books
$6,920
Cash balance per bank statement
$4,100
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$5,300
Cash balance per books
$5,705
NSF check
$1,570
Bank service charge
$35
Adjusted cash balance per books
$4,100
Cash balance per bank statement
$5,300
Deposit in transit
$750
Outstanding checks
$1,950
Adjusted cash balance per bank
$4,100
Cash balance per books
$5,705
NSF check
$1,570
Bank Service charge $35Adjusted cash balance per books
$4,100
Explanation / Answer
Bank Reconciliation -
Cash Balance as per Bank statement $5300
(-) Deposite in transit ($750)
(-) Outstanding checks ($1950)
Adjusted balance per bank $2600
Cash Balance per books $5705
(-) NSF check ($1570)
(+) Bank service charge $35
Adjusted cash balance per books $4170
Journal Entries -
Service Fee Dr. $35
Accounts receivable Dr. $1570
To Cash $1605
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