Question

Question 3 View Policies Current Attempt in Progress Margaret Sells is unable to reconcile the bank balance at January 31. Margaret's reconciliation is shown here. Cash balance per bank $4,677.20 Add: NSF check 605.00 Less: Bank service charge 51.50 Adjusted balance per bank $5,230.70 Cash balance per books $4,975.20 Less: Deposits in transit 566.50 Add:Outstanding checks 925.00 Adjusted balance per books $5,333.70 (a) What is the proper adjusted cash balance per bank? (Round answers to2 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 adjusted cash balance per books $

Answer 1

a) What is the properadjusted cash balance per bank? Cash balance per bank $4,677.20 Add: Deposits in transit $566.50 Less: Outstanding checks (S925) The proper adjusted cash balance per bank $4,318.70 b) What is the proper adjusted cash balance per books? Cash balance per books $4,975.20 ($605) Less: NSF check Less: Bank service charge ($51.50) The proper adjusted cash balance per books $4,318.70 c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books Account Titles and Explanation Debit Credit Date Accounts Receivable $605 Jan. 31 Cash $605 (To record NSF check) Bank Service Charge $51.50 Jan. 31 Cash $51.50 (To record bank service charge)