The bank statement balance is $3,500 and shows a service charge of $24 ​, interest earned of $3​, and an NSF cheque for $100. Deposits in transit total $1,400​; outstanding cheques are $450. The bookkeeper mistakenly recorded as $158 a cheque of $132 in payment of an account payable. Prepare Bank Reconciliation Statement Prepare Adjusting Entries.

Principles of Accounting Volume 1
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Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5EA: The bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding...
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The bank statement balance is $3,500 and shows a service charge of $24 ​, interest earned of $3​, and an NSF cheque for $100. Deposits in transit total $1,400​; outstanding cheques are $450. The bookkeeper mistakenly recorded as $158 a cheque of $132 in payment of an account payable.

  • Prepare Bank Reconciliation Statement
  • Prepare Adjusting Entries.
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