Question

he following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank $ 18,800 Balance per company records 10,680 Bank service charges 20 Deposit in transit 3,750 Note collected by bank with $150 interest 5,050 Outstanding checks 6,840 a. What is the adjusted balance on the bank reconciliation? $ b. Journalize any necessary entries for Lays Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

Answer:

a. $15,710

b. Journal entry

Explanation:

a. The adjusted balance on the bank reconciliation is shown below:  

= Balance per bank + deposit in transit - outstanding checks

= $18,800 + $3,750 - $6,840

=  $15,710

b. The journal entry is as follows

Bank service charges $20

         To Cash $20

(Being the cash is paid is recorded)

We simply do the above calculations and the journal entry to record this transaction