Question
Sky Company is unable to reconcile the bank balance at January 31. Sky's reconciliation is as follows. Cash balance per bank $5,300 Add: NSF check
Sky Company is unable to reconcile the bank balance at January 31. Sky's reconciliation is as follows.
|
| Cash balance per bank | $5,300 |
|
| Add: NSF check | 1,570 |
|
| Less: Bank service charge | 35 |
|
| Adjusted balance per bank | $6,835 |
|
| Cash balance per books | $5,705 |
|
| Less: Deposits in transit | 750 |
|
| Add: Outstanding checks | 1,950 |
|
| Adjusted balance per books | $6,905 |
Instructions
| (a) | Prepare a correct bank reconciliation. |
| (b) | Journalize the entries required by the reconciliation. |
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Auditing Employee Management
Authors: Kelli W. Vito, SPHR, CCP
1st Edition
0894137190, 9780894137198
