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Exercise 7-6 Rachel Sells is unable to reconcile the bank balance at January 31. Rachels reconciliation is shown here. Cash balance per bank $3,942.20 Add:

Exercise 7-6

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

Cash balance per bank

$3,942.20

Add: NSF check

630.00

Less: Bank service charge

39.50

Adjusted balance per bank

$4,532.70

Cash balance per books

$4,240.20

Less: Deposits in transit

578.50

Add: Outstanding checks

950.00

Adjusted balance per books

$4,611.70

(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 $Enter a dollar amount rounded to 2 decimal places

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(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 $Enter a dollar amount rounded to 2 decimal places

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(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

Jan. 31

Enter an account title to record NSF check on January 31

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Enter a debit amount

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Enter a credit amount

image text in transcribed

Enter an account title to record NSF check on January 31

image text in transcribed

Enter a debit amount

image text in transcribed

Enter a credit amount

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(To record NSF check)

Jan. 31

Enter an account title to record bank service charge on January 31

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Enter a debit amount

image text in transcribed

Enter a credit amount

image text in transcribed

Enter an account title to record bank service charge on January 31

image text in transcribed

Enter a debit amount

image text in transcribed

Enter a credit amount

image text in transcribed

(To record bank service charge)

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