Bank ReconciliationThe following data were gathered to use in reconciling the bank account of Photo Op. Company:Balance per bank$ 11,720Balance per company records9,785Bank service charges55Deposit in transit1,730NSF check640Outstanding checks4,360a.  What is the adjusted balance on the bank reconciliation?$b.  Journalize any necessary entries for Photo Op. Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

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Asked Oct 1, 2019
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Bank Reconciliation

The following data were gathered to use in reconciling the bank account of Photo Op. Company:

Balance per bank $ 11,720
Balance per company records 9,785
Bank service charges 55
Deposit in transit 1,730
NSF check 640
Outstanding checks 4,360

a.  What is the adjusted balance on the bank reconciliation?
$

b.  Journalize any necessary entries for Photo Op. Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

       
       
       
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Expert Answer

Step 1

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books.

Step 2

a. Calculate the adjusted balance on ban...

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Bank reconciliation statement of Company P Amount Amount Particulars Particulars (S) (S) Cash balance as per bank Cash balance as per $ 11,720 books $ 1,730 Less: Bank charges $ 4,360 Less: NSF checks $9,090 Adjusted cash balance $ 9,785 statement Add: Deposit in transit Less: Outstanding checks Adjusted bank balance $55 $ 640 $9.090

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