ng data were gathered to use in reconciling the bank account of Reddan Company: nce per bank $17,500 nce per company records 8,545 x service charges 45 osit in transit 2,650 collected by bank with $120 interest 5,400 tanding checks 6,250 tructions at is the adjusted balance on the bank reconciliation? irnalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of count titles.
ng data were gathered to use in reconciling the bank account of Reddan Company: nce per bank $17,500 nce per company records 8,545 x service charges 45 osit in transit 2,650 collected by bank with $120 interest 5,400 tanding checks 6,250 tructions at is the adjusted balance on the bank reconciliation? irnalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of count titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| a. | What is the adjusted balance on the bank reconciliation? |
| b. | Journalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles. |
Transcribed Image Text:The following data were gathered to use in reconciling the bank account of Reddan Company:
Balance per bank
$17,500
Balance per company records
8,545
Bank service charges
45
Deposit in transit
2,650
Note collected by bank with $120 interest
5,400
Outstanding checks
6,250
Instructions
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of
account titles.
Expert Solution
Step 1 Introduction
The bank reconciliation statement is prepared to equate the balances of cash book and passbook with various adjustments.
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