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

Question

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.

Accepted Answer

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

Question 8.3: Bank Reconciliation The following data were gathered to use...