Question
E7-6 Sally Rice is unable to reconcile the bank balance at January 31. Sallys reconciliation is shown here. Prepare bank reconciliation and adjusting entries. (LO
E7-6 Sally Rice is unable to reconcile the bank balance at January 31. Sallys reconciliation is shown here. Prepare bank reconciliation and adjusting entries. (LO 5), AP Cash balance per bank $3,677.20 Add: NSF check 450.00 Less: Bank service charge 28.00 Adjusted balance per bank $4,099.20 Cash balance per books $3,975.20 Less: Deposits in transit 590.00 Add: Outstanding checks 770.00 Adjusted balance per books $4,155.20 Instructions (a)What is the proper adjusted cash balance per bank? (b)What is the proper adjusted cash balance per books? (c)Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started