The following data were gathered to use in reconciling the bank account of Reddan Company:

Balance per bank	$17,350
Balance per company records	10,035
Bank service charges	35
Deposit in transit	3,350
Note collected by bank with $190 interest	4,600
Outstanding checks	6,100

a.	What is the adjusted balance on the bank reconciliation?
b.	Journalize any necessary entries for Reddan Company based on the bank reconciliation.

CHART OF ACCOUNTS

Reddan Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

FIRST QUESTION

a. What is the adjusted balance on the bank reconciliation?

SECOND QUESTION

b. Journalize any necessary entries for Reddan Company based on the bank reconciliation on December 31.

General Journal Instructions

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5