Question

Bank Reconciliation

The following data were gathered to use in reconciling the bank account of Lays Company:

Balance per bank	$ 34,690
Balance per company records	28,930
Bank service charges	160
Deposit in transit	5,110
NSF check	1,880
Outstanding checks	12,910

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

a) The adjusted balance on the bank reconciliation is as follows:

	$
Balance per company records	28.930
Less:
Bank Service Charges	(160)
NSF Check	(1,880)
Adjusted Balance	$26,890

The adjusted balance on the bank reconciliation is $26,890

b)Journal Entries are as follows:

Date	Account and Explanation	Debit($)	Credit($)
1)	Bank service Charges	160
	Cash		160
	( Recorded the payment of Bank service Charges)
2)	Account Receivable	1,880
	Cash		1,880
	(Recorded the NSF Check)