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The following information regarding cash for Alpha Company is provided for the m

ID: 2524003 • Letter: T

Question

The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016:

Item

Amount

Ending Cash per Bank Statement

$1,700

Ending Cash per Company Books

$1,905

Bank Service Charges

$25

Deposits in Transit

$425

Outstanding Cheques

$350

Customer Cheque returned NSF

$105

Use this information to prepare the compound General Journal entry (without explanation) for March 31, 2016, to cause the company books to match the adjusted cash balance based on the completed bank reconciliation. If no entry is required then write "No Entry Required."

Explanation / Answer

Alpha Company

Bank Reconciliation Statement

Alpha Company

Bank Reconciliation

for the month ended March 31, 2016

for the year ended July 31, 2017

adjusted cash balance as per bank:

Cash Balance as per bank statement

$1,700

Deposits in transit

$425

$2,125

Outstanding checks

($350)

Adjusted cash balance

$1,775

Adjusted cash balance as per books:

Cash Balance as per books

$1,905

Bank service charge

($25)

NSF check

($105)

Adjusted cash balance

$1,775

Compound General Journal Entry –

Account Titles and Explanation

Debit

Credit

Miscellaneous Expenses

$25

Accounts Receivable

$105

Cash

$130

Alpha Company

Bank Reconciliation

for the month ended March 31, 2016

for the year ended July 31, 2017

adjusted cash balance as per bank:

Cash Balance as per bank statement

$1,700

Deposits in transit

$425

$2,125

Outstanding checks

($350)

Adjusted cash balance

$1,775

Adjusted cash balance as per books:

Cash Balance as per books

$1,905

Bank service charge

($25)

NSF check

($105)

Adjusted cash balance

$1,775