Bank balance: $12,565.Book balance: $13,744.Deposits in transit: $2,509.Outstanding checks: $1,777.Bank charges: $125.Bank incorrectly charged the account for $412. The bank will correct the error next month.Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.Prepare the journal entry to reconcile the bank statement.

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Answered: Bank balance: $12,565. Book balance:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bank balance: $12,565.
Book balance: $13,744.
Deposits in transit: $2,509.
Outstanding checks: $1,777.
Bank charges: $125.
Bank incorrectly charged the account for $412. The bank will correct the error next month.
Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.

Prepare the journal entry to reconcile the bank statement.

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