Current Attempt in Progress

Rachel Sells is unable to reconcile the bank balance at January 31. Rachels reconciliation is shown as follows.

Cash balance per bank		$3,702.20
Add: NSF check		585.00
Less: Bank service charge		40.00
Adjusted balance per bank		$4,247.20
Cash balance per books		$4,000.20
Less: Deposits in transit		578.00
Add: Outstanding checks		905.00
Adjusted balance per books		$4,327.20

(a) What is the proper adjusted cash balance per bank? (Round answers to 2 decimal places, e.g. 52.75.)

The proper adjusted cash balance per bank

$

(b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.)

The proper adjusted cash balance per books

$

(c) Prepare a tabular analysis for the adjustments required to reach the adjusted cash balance per books. Include margin explanations for the changes in revenues and expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 2 decimal places, e.g. 52.75.)

Assets			=	Liabilities	+	Stockholders Equity
Cash		Accts. Rec.
	+		=		+	Rev.	-	Exp.
										Cash over and shortSales revenueMiscellaneous expenseOpening cash balance
										Miscellaneous expenseSales revenueOpening cash balanceCash over and short