Question
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 |
(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 |
(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 | Enter a debit amount | Enter a credit amount |
Enter an account title to record NSF check on January 31 | Enter a debit amount | Enter a credit amount | |
(To record NSF check) | |||
Jan. 31 | Enter an account title to record bank service charge on January 31 | Enter a debit amount | Enter a credit amount |
Enter an account title to record bank service charge on January 31 | Enter a debit amount | Enter a credit amount | |
(To record bank service charge) |
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