EB6. LO 8.6The bank reconciliation shows the following adjustments.Deposits in transit: $1,698Notes receivable collected by bank: $2,500; interest: $145Outstanding checks: $987Error by bank: $436Bank charges: $70Prepare the correcting journal entry.

Answered: The bank reconciliation shows the…

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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EB6.

LO 8.6The bank reconciliation shows the following adjustments.

Deposits in transit: $1,698
Notes receivable collected by bank: $2,500; interest: $145
Outstanding checks: $987
Error by bank: $436
Bank charges: $70

Prepare the correcting journal entry.

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bank reconciliation is prepared to reconcile the balance of cash as per bank statement and as per books. As a result correcting journal entry are made in books for those adjusted which are made on the book side of Bank reconciliation.

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