Question

Exercise 5-6 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 $3,687.20 460.00 33.00 Adjusted balance per bank $4,114.20 Cash balance per books Less: Deposits in transit Add: Outstanding checks Adjusted balance per books $3.985.20 585.00 780.00 $4,180.20 (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 s 3492.20 (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 3492.20 (c) Prepare a tabular analysis for the adjustments required to reach the adjusted cash balance per books. Include margin explanations for the changes in revenues and expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 2 decimal places, e.g. 52.75.) Assets Liabilities Stockholders' Equity Accts. Cash Rec. + Rev. Exp. + + - Click you would like to Show Work for this question: Modify Show Work

2.

Answer 1

(a)

Cash balance per bank	3687.20
Add: Deposits in transit	585.00
	4272.20
Less: Outstanding checks	780.00
Proper adjusted cash balance per bank	3492.20

(b)

Cash balance per books	3985.20
Less:
NSF check	460.00
Bank service charge	33.00
Proper adjusted cash balance per books	3492.20

(c)

Assets			=	Liabilities	+	Stockholders' Equity
Cash	+	Accts. Rec.	=		+	Rev.	-	Exp.
-460.00		460.00
-33.00								33.00	Bank service charges*

*Kindly select appropriately from the drop-down since the same has not been provided with the question. For any clarifications, write under the comments section.

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