Exercise 7-9

Don Wyatt is unable to reconcile the bank balance at January 31. Dons reconciliation is as follows.

Cash balance per bank $3,760.20 Add: NSF check 590.00 Less: Bank service charge 30.00 Adjusted balance per bank $4,320.20 Cash balance per books $4,075.20 Less: Deposits in transit 630.00 Add: Outstanding checks 935.00 Adjusted balance per books $4,380.20

Prepare a correct bank reconciliation. (List items that increase cash balance first. Reconcile cash balance per bank first. Round answers to 2 decimal places, e.g. 52.75.)

Don Wyatt Bank Reconciliation January 31 Deposits in transit Adjusted cash balance per bank Outstanding checks NSF check Adjusted cash balance per book Cash balance per books Bank service charge Cash balance per bank statement $ Less Add : Cash balance per books Bank service charge NSF check Outstanding checks Adjusted cash balance per book Cash balance per bank statement Adjusted cash balance per bank Deposits in transit Add Less : Cash balance per bank statement Outstanding checks Adjusted cash balance per bank NSF check Bank service charge Adjusted cash balance per book Deposits in transit Cash balance per books Adjusted cash balance per bank Deposits in transit Adjusted cash balance per book Outstanding checks Bank service charge Cash balance per bank statement NSF check Cash balance per books $ Adjusted cash balance per bank Bank service charge Cash balance per books Adjusted cash balance per books Deposits in transit NSF check Outstanding checks Cash balance per bank statement $ Less Add : Cash balance per bank statement Cash balance per books Adjusted cash balance per books Adjusted cash balance per bank Outstanding checks Deposits in transit NSF check Bank service charge $ Adjusted cash balance per books Bank service charge Adjusted cash balance per bank Deposits in transit Cash balance per bank statement Cash balance per books Outstanding checks NSF check Bank service charge NSF check Cash balance per bank statement Adjusted cash balance per bank Cash balance per books Adjusted cash balance per books Deposits in transit Outstanding checks $

Journalize the entries required by the reconciliation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)

No. Account Titles and Explanation Debit Credit 1. (To record NSF check.) 2. (To record bank service charge.)