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, computed as follows:
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