Question

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

Balance per bank	$ 17,980
Balance per company records	15,005
Bank service charges	85
Deposit in transit	2,650
NSF check	980
Outstanding checks	6,690

a. What is the adjusted balance on the bank reconciliation?
$

b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank

Answer 1

Solution:

a. What is the adjusted balance on the bank reconciliation?

Details	Amount($)
Balance per bank	$17,980
Less: Outstanding checks	($6,690)
Add: Deposit in transit	$2,650
Adjusted balance on the bank reconciliation	$13,940

b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. For a compound transaction.

Account titles and explanations	Debit($)	Credit($)
Accounts receivable A/c Dr	$980
Bank service charges A/c Dr	$85
To cash A/c		$1,065