dugen.wileyplus.com/edugen/Iti/main.uniUS Kimmel, Financial Accounting, 8eHelp | System AnnouncernentsExercise 7-6Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconciliation is shown here.Cash balance per bank$4,662.20Add: NSF check515.00Less: Bank service charge42.00Adjusted balance per bank$5,135.20Cash balance per books$4,960.20Less: Deposits in transit576.00Add: Outstanding checks835.00Adjusted balance per books$5,219.20(a) What is the proper adjusted cash balance per bank? (Round answers to 2 decimal places, e.g. 52.75.)The proper adjusted cash balance per bank%24(b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.)The proper adjusted cash balance per books(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Round answers to 2 dentered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditJan. 31(To record NSF check)Jan. 31(To record bank service charge)Click if you would like to Show Work for this question: Open Show WorkSHOW LIST OF ACCOUNTS

Answered: Exercise 7-6 Rachel Sells is unable to…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

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dugen.wileyplus.com/edugen/Iti/main.uni
US Kimmel, Financial Accounting, 8e
Help | System Announcernents
Exercise 7-6
Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconciliation is shown here.
Cash balance per bank
$4,662.20
Add: NSF check
515.00
Less: Bank service charge
42.00
Adjusted balance per bank
$5,135.20
Cash balance per books
$4,960.20
Less: Deposits in transit
576.00
Add: Outstanding checks
835.00
Adjusted balance per books
$5,219.20
(a) What is the proper adjusted cash balance per bank? (Round answers to 2 decimal places, e.g. 52.75.)
The proper adjusted cash balance per bank
%24
(b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.)
The proper adjusted cash balance per books
(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Round answers to 2 d
entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Jan. 31
(To record NSF check)
Jan. 31
(To record bank service charge)
Click if you would like to Show Work for this question: Open Show Work
SHOW LIST OF ACCOUNTS

Expert Solution

Step 1

Bank reconciliation statement: This statement shows the deposits, withdrawals and other charges and receipts during the period. It is a statement which reconciles a company’s bank account with the balance recorded in its financial statements.

Journal entry: It is also called as book of original entry. All financial transactions occurred in a business are recorded using the journal entry. The journal entry is recorded in the order in which a financial transaction happens and for every entry a debit and a credit for an equal amount is recorded.

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