Question 8.3: Bank Reconciliation The following data were gathered to use ......
Bank Reconciliation
The following data were gathered to use in reconciling the bank account of Photo Op:
Balance per bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,500
Balance per company records . . . . . . . . . . . . . . . . . . . . . . . 13,875
Bank service charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Deposit in transit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750
NSF check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800
Outstanding checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,250
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Photo Op based on the bank reconciliation.
a. $13,000, as shown below.
Bank section of reconciliation: $14,500 + $3,750 – $5,250 = $13,000
Company section of reconciliation: $13,875 – $75 – $800 = $13,000
b. Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800
Miscellaneous Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875