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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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.
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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 ...
Purchase this Solution
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