Don Wyatt is unable to reconcile the bank balance at January 31. Don Wyatt’s reconciliation is as follows. Cash balance per bank

Question

3 years ago

11

Don Wyatt is unable to reconcile the bank balance at January 31. Don Wyatt’s reconciliation is as follows. Cash balance per bank

$3,560.20 Add: NSF check 490.00 Less: Bank service charge 25.00 Adjusted balance per bank $4,025.20 Cash balance per books $3,875.20 Less: Deposits in transit 530.00 Add: Outstanding checks 730.00 Adjusted balance per books $4,075.20(a) Prepare a correct bank reconciliation (b) Journalize the entries required by the reconciliation.

Business

2 answers:

Musya8 [376] · Answer 1 · 2021-12-01T00:27:53+03:00

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

navik [9.2K] · Answer 2 · 2021-12-01T02:55:10+03:00

Answer:

a) Amount in $

Balance per bank statement 3,560.20

Deposit in transit 530.00

Outstanding check (730.00)

Bank charges 25.00

NSF Check 490.00

Book balance  3,875.20 

b)

Debit Bank charge $25

Credit Cash account $25

Being entries to recognize bank charges for the period.

Explanation:

Considering the transaction, Deposit in transit has been recognized in the books and will thus be added to the balance per bank. The bank charge was deducted from the bank balance but is yet to be deducted from the book balance hence it is added back to the bank balance. The outstanding check has been deducted from the books hence the deduction from the bank. See the reconciliation below.

Amount in $