Question

Cheyenne is unable to reconcile the bank balance at January 31. Cheyenne's reconciliation is as follows. Cash balance per bank Add: NSF check Less: Bank service charge Adjusted balance per bank $4,300.20 320.00 34.00 $4,586.20 Cash balance per books $4,615.20 Less: Deposits in transit 900.00 Add: Outstanding checks 939.00 Adjusted balance per books $4,654.20 Prepare a correct bank reconciliation. (List items that increase cash balance first. Reconcile cash balance per bank first. Round answers to 2 decimal places, e.g. 52.75.) Cheyenne Bank Reconciliation eTextbook and Media List of Accounts

Answer 1

Cheyenne
Bank Reconciliation
January 31
Cash Balance per bank statement	$            4,300.20
Add	Deposits in transit	$               900.00
		$            5,200.20
Less	Outstanding checks	$               939.00
Adjusted cash balance per bank	$            4,261.20
Cash balance per books	$            4,615.20
Less
NSF Check	320
Bank service charge	34
		$               354.00
Adjusted cash balance per books		$            4,261.20

No	Account Titles and Explanation	Debit	Credit
1	Accounts Receivable	$       320
	Cash		$       320
	(To record NSF check)
2	Bank charge Expense	$         34
	Cash		$         34
	(To record bank service charge)