Question

Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconciliation is shown as follows Cash balance per bank Add: NSF check Less: Bank service charge Adjusted balance per bank $4,632.20 495.00 51.00 $5.076.20 Cash balance per books $4,930 20 Les Deposits in transit 567.00 Add: Outstanding checks 15.00 Adjusted balance per books 55.178 20 (a) What is the proper adjusted cash balance perbank (Round ers to 2 decimal places 52.75) The proper adjusted cash balance per bank $ 438420 What is the proper adjusted cash balance per books (Round answers to 2 decimal places, s. 52.75] The proper adsted cash balance per books 436420 decrease in Assets Prepare a tabur analysis for the adjustments required to reach the adjusted cash balance per books include margin explanations for the changes in revenues and expenses to Liabilities or Stockholders' Coulty place a negative sig for parentheses in front of the amount entered for the particular Asset t or Equity that was reduced Round answers to 2 decimal places . $275

Answer 1

(a)

Cash balance per bank	$4632.20
Add: Deposits in transit	$567
Less: Outstanding checks	$815
Adjusted balance per bank	$4384.20

(b)

Cash balance per books	$4930.20
Less: NSF check	$495
Less: Bank service charge	$51
Adjusted balance per books	$4384.20

(c)

Assets			=	Liabilities	+	Stockholder’s Equity
Cash	+	Accts. Rec.	=		+	Rev.	-	Exp.
-$495		$495							Cash over and short
-$28								-$28	Misc. Exp.