Question
Rachel Sells is unable to reconcile the bank balance at January 31. Rachels reconciliation is shown here. Cash balance per bank $3,997.20 Add: NSF check
Rachel Sells is unable to reconcile the bank balance at January 31. Rachels reconciliation is shown here.
| Cash balance per bank | $3,997.20 | |
| Add: NSF check | 470.00 | |
| Less: Bank service charge | 43.50 | |
| Adjusted balance per bank | $4,423.70 | |
| Cash balance per books | $4,295.20 | |
| Less: Deposits in transit | 574.50 | |
| Add: Outstanding checks | 790.00 | |
| Adjusted balance per books | $4,510.70 |
(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 | $
|
(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 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 |
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| (To record NSF check) | |||
| Jan. 31 |
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| (To record bank service charge) |
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