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
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