Question

Question 1 --/1 View Policies Current Attempt in Progress Helen Sells is unable to reconcile the bank balance at January 31. Helen's reconciliation is shown here. $4,297.20 Cash balance per bank Add: NSF check 595.00 51.50 Less: Bank service charge $4,840.70 Adjusted balance per bank $4,595.20 Cash balance per books Less: Deposits in transit 566.50 915.00 Add: Outstanding checks $4,943.70 Adjusted balance per books (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 (b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.) The proper adiusted cash balance per books $

Answer 1

a) The proper adjusted cash balance per bank = 4297.20+566.50-915 = 3948.70

b) The proper adjusted cash balance per book = 4595.20-595-51.50 = 3948.70

Adjusting entry

Date	account and explanation	Debit	Credit
Jan 31	Account receivable	595
	Cash		595
	(To record NSF Check)
Jan 31	Bank Charges	51.50
	Cash		51.50
	(To record bank charges)