Question

 E7-21 Preparing a bank reconciliation

 1. Adjusted Balance $1,137

 Hardy Photography's checkbook lists the following:

 Hardy's November bank statement shows the following:

 *This is the correct amount for check number 624.

 Requirementscrt 

 1. Prepare Hardy Photography's bank reconciliation at November 30, 2018. 

 2. How much cash does Hardy actually have on November 30, 2018? 

 3. Journalize any transactions required from the bank reconciliation.

Answer 1

Answer 1 :

HARDY PHOTOGRAPHY

Bank Reconciliation

November 30, 2018

BANK			BOOK
Balance,November 30, 2018		$302	Balance,November 30, 2018		1,245
ADD :			ADD :
Deposit in transit		1,235
		1,537			1,245
LESS:			LESS:
Outstanding checks			Book error check 624 ($105 - $45)	60
Check 626	110		Printed checks	23
Check 627	290	400	Service charge	25	108
Adjusted bank balance, November 30, 2018		$1,137	Adjusted book balance, November 30, 2018		$1,137

Answer 2 :

Cash balance Hardy have on November 30, 2018 = Adjusted book balance, November 30, 2018 = $1,137  

Answer 3 :

Journal Entries

Date	Accounts Titles & Explanation	Debit	Credit
Nov.30	Utilities Expense	60
	Cash		60
	(To record rectification of error made regarding check no 624)
Nov.30	Bank Expense	23
	Cash		23
	(To record printed checks charges)
Nov.30	Bank Expense	25
	Cash		25
	(To record bank service charges)

Answer 2