Question

1. Bank Reconciliation

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

   Balance per bank	$ 24,990
   Balance per company records	20,845
   Bank service charges	115
   Deposit in transit	3,680
   NSF check	1,360
   Outstanding checks	9,300

   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 Dotson 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

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   b. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company.

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   Partially correct

Answer 1

a)

Dotson Company
Bank Reconciliation
Cash balance as per bank	$ 24,990	Cash balance as per book	$ 20,845
Deposit in transit	$    3,680	Bank service charges	$     (115)
Outstanding check	$ (9,300)	NSF Check	$ (1,360)
Adjusted bank balance	$ 19,370	Adjusted book balance	$ 19,370

b.

Accounts receivable	$    1,360
Misc. expenses	$        115
Cash	$    1,475