Question

Bank Reconciliation

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

Balance per bank	$ 27,490
Balance per company records	22,930
Bank service charges	130
Deposit in transit	4,050
NSF check	1,490
Outstanding checks	10,230

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

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a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error.

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.

	Accounts Receivable
	Miscellaneous Expense
	Cash

Answer 1

a.

Bank Reconciliation

Balance as per bank statement	27,490	Balance as per book	22,930
add :
Deposit in transit	4,050
Less :		Less :
Outstanding checks	-10,230	Bank service charge	-130
		NSF check	-1,490
Adjusted balance	$21,310	Adjusted balance	$21,310

Adjusted balance= $21,310

b.

Journal

Date	Account Title and Explanation	Debit	Credit
	Account receivable	1,490
	Miscellaneous Expense	130
	Cash		1,620