Question

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

Balance per bank	$9,060
Balance per company records	7,910
Bank service charges	20
Deposit in transit	2,480
NSF check	1,920
Outstanding checks	5,570

	Instructions
A.	What is the adjusted balance on the bank reconciliation?
B.	On March 1, journalize any necessary entries for Torres Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles.

Balance per bank	$9,060
Balance per company records	7,910
Bank service charges	20
Deposit in transit	2,480
NSF check	1,920
Outstanding checks	5,570

	Instructions
A.	What is the adjusted balance on the bank reconciliation?
B.	On March 1, journalize any necessary entries for Torres Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles.

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Starting question

A. What is the adjusted balance on the bank reconciliation

Answer 1

	Torres Company Bank Reconcilation At the end of April 30
	Balance as per bank	$ 9,060
	Add: Deposit in transit	$ 2,480
	Deduct : Outstanding Checks	($5,570)
	Adjusted balance	$ 5,970
	Balance as per Company Records	$ 7,910
	Deduct : Bank Service Charge	($20)
	Deduct : NSF Cheques	($1,920)
	Adjusted balance	$ 5,970
Date	Accounts Titles and Explanations	Debit (in $)	Credit (in $)
Mar - 01	Accounts Receivable	$ 1,920
	Cash		$ 1,920
	(To record NSF Check)
Mar - 01	Bank Service Charges	$ 20
	Cash		$ 20
	(To record bank service charge )