Question

lizabeth Sells is unable to reconcile the bank balance at January 31. Elizabeth’s reconciliation is shown here.

Cash balance per bank		$4,272.20
Add: NSF check		565.00
Less: Bank service charge		45.50
Adjusted balance per bank		$4,791.70
Cash balance per books		$4,570.20
Less: Deposits in transit		572.50
Add: Outstanding checks		885.00
Adjusted balance per books		$4,882.70

(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

$Enter a dollar amount rounded to 2 decimal places

(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

$Enter a dollar amount rounded to 2 decimal places

(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31	Enter an account title to record NSF check on January 31	Enter a debit amount	Enter a credit amount
	Enter an account title to record NSF check on January 31	Enter a debit amount	Enter a credit amount
	(To record NSF check)
Jan. 31	Enter an account title to record bank service charge on January 31	Enter a debit amount	Enter a credit amount
	Enter an account title to record bank service charge on January 31	Enter a debit amount	Enter a credit amount
	(To record bank service charge)

Answer 1

a
Cash balance per bank	4272.20
Add: Deposits in transit	572.50
Less: Outstanding checks	885.00
The proper adjusted balance per bank	3959.70
b
Cash balance per books	4570.20
Less: NSF check	565.00
Less: Bank service charge	45.50
The proper adjusted balance per books	3959.70

c
Date	Account Titles and explanation	Debit	Credit
Jan. 31	Accounts Receivable	565.00
	Cash		565.00
	(To record NSF check)
Jan. 31	Bank charges expense	45.50
	Cash		45.50
	(To record bank service charge)