Bank Reconciliation

The following data were gathered to use in reconciling the bank account of Lays Company:

Balance per bank$ 34,020Balance per company records28,380Bank service charges160Deposit in transit5,010NSF check1,850Outstanding checks12,660

a.What is the adjusted balance on the bank reconciliation?

$

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a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error.

b.Journalize any necessary entries for Lays Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.