The following data were gathered to use in reconciling the bank account of Torres Company:
Balance per bank $12,175
Balance per company records 9,480
Bank service charges 50
Deposit in transit 1,800
NSF check 1,250
Outstanding checks 5,795
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Torres Company based on the bank reconciliation.
Answer:
a. $8,180 as shown below.
Bank section of reconciliation: $12,175 + $1,800 – $5,795 = $8,180
Company section of reconciliation: $9,480 – $50 – $1,250 = $8,180
b.
Accounts Receivable 1,250
Miscellaneous Expense 50
Cash 1,300