Use the following data for questions 1 and 2
Quinn Company's bank statement at January 31 shows a balance of $13,360, while the ledger account for Cash in Quinn's ledger shows a balance of $12,890 at the same date. The only reconciling items are the following:
? Deposit in transit, $890.
? Bank service charge, $24.
? NSF check from customer Greg Denton in the amount of $426.
? Error in recording check No. 389 for rent: check was written in the amount of $1,320, but was recorded improperly in the accounting records as $1,230.
? Outstanding checks, $?????
1. What is the total amount of outstanding checks at January 31?
a. $1,048. b. $868. c. $1,900. d. $1,720.
2. Assuming a single journal entry is made to adjust Quinn Company's accounting records at January 31, the journal entry includes:
a. A debit to Rent Expense for $90.
b. A credit to Accounts Receivable, G. Denton, for $426.
c. A credit to Cash for $450.
d. A credit to Cash for $1,720.
Please find a detailed Bank Reconcilliation Statement as well the Journal Entries that would be required.
To answer the first question, you would need to calculate the Adjusted Balance per Books, and that would equal the Adjusted Balance per Bank
After you get this figure, you add to it the amount of deposits in transit, then subtract the sum of the cash balance per bank and that ...
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