Question

how do i do this and what are the steps

Exercise 7-6 Your answer is partially correct. Try again. Rachel Sells is unable to reconcile the bank balance at January 31, Rachel's reconciliation is shown here. Cash balance per bank Add: NSF check Less: Bank service charge Adjusted balance per bank $4,592.20 585.00 38.50 $5,138.70 Cash balance per books Less: Deposits in transit Add: Outstanding checks Adjusted balance per books $4,890.20 579.50 905.00 $5,215.70 (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 5,138.7 (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 5,215.7

Answer 1

Bank Reconciliation

Bank		Books
Balance, January 31	4,592.20	Balance, January 31	4,890.20
Add:		Add:
Deposit in transit	579.50
Less:		Less:
Outstanding checks	- 905	NSF check	- 585
		Bank service charges	- 38.50
Adjusted bank balance	$4,266.7	Adjusted book balance	$4,266.7

a)

Adjusted cash balance per bank = $4,266.7

b)

Adjusted cash balance per book = $4,266.7

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