Rachel Sells is unable to reconcile the bank balance at January 31. Rachel’s rec
ID: 2564546 • Letter: R
Question
Rachel Sells is unable to reconcile the bank balance at January 31. Rachel’s reconciliation is shown here.
43.50
$4,173.70
805.00
$4,260.70
(a) What is the proper adjusted cash balance per bank? (Round answers to 2 decimal places, e.g. 52.75.)
(b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.)
(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Round answers to 2 decimal places, e.g. 52.75. 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 $3,732.20 Add: NSF check 485.00 Less: Bank service charge43.50
Adjusted balance per bank$4,173.70
Cash balance per books $4,030.20 Less: Deposits in transit 574.50 Add: Outstanding checks805.00
Adjusted balance per books$4,260.70
Explanation / Answer
a The proper adjusted cash balance per bank =3732.2+574.5-805= 3501.7 b The proper adjusted cash balance per books = 4030.2-485-43.5= 3501.7 c Jan-31 Accounts receivable 485 Cash 485 Jan-31 Bank service charge/Miscellaneous expense 43.5 Cash 43.5
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.