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Adjusted cash balance per books

19/04/2021 Client: muhammad11 Deadline: 2 Day

E7-6 Sally Rice is unable to reconcile the bank balance at January 31. Sally’s reconciliation is shown here.

Prepare bank reconciliation and adjusting entries.

Cash balance per bank

$3,677.20

Add: NSF check

450.00

Less: Bank service charge

28.00

Adjusted balance per bank

$4,099.20

Cash balance per books

$3,975.20

Less: Deposits in transit

590.00

Add: Outstanding checks

770.00

Adjusted balance per books

$4,155.20

Instructions

(a) What is the proper adjusted cash balance per bank?
(b) What is the proper adjusted cash balance per books?
(c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books.

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