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    Bank Reconciliation and Adjusting Entries

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    Deposits in transit at August 31 are $6,061, and checks outstanding at August 31 total $2,472. Cash on hand at August 31 is $494. The bookkeeper improperly entered one check in the books at $148.96 which was written for $177.96 for supplies (expense); it cleared the bank during the month of August.

    (a) Prepare a bank reconciliation dated August 31, 2012, proceeding to a correct balance
    (b) Prepare any entries necessary to make the books correct and complete.
    (c) What amount of cash should be reported in the August 31 balance sheet?

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    Bank Reconciliation and Adjusting Entries Solution
    Deposits in transit at August 31 are $6,061, and checks outstanding at August 31 total $2,472. Cash on hand at August 31 is $494. The bookkeeper improperly entered one check in the books at $148.96 which was written for ...

    Solution Summary

    Creating the Bank Reconciliation Statement and entering the necessary Adjusting Entries to bring the cash and other accounts on the books to the correct levels.

    $2.19