**Bank Reconciliation**The following data were gathered to use in reconciling the bank account of Conway Company:- **Balance per bank**: $23,900- **Balance per company records**: $8,700- **Bank service charges**: $50- **Deposit in transit**: $5,500- **Note collected by bank with $450 interest**: $9,450- **Outstanding checks**: $11,300a. **What is the adjusted balance on the bank reconciliation?** Adjusted balance: **$8,600**b. **Journalize any necessary entries for Conway Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.**| Accounts Payable | | $23,900 ||-------------------|---------------------|---------|| Accounts Receivable | | $5,500 || Cash Short and Over | | $9,450 || Interest Expense | | || Interest Revenue | | $11,300 |

Answered: The following data were gathered to use…

Business

Accounting

The following data were gathered to use in reconciling the bank account of Conway Company:

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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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

**Bank Reconciliation**

The following data were gathered to use in reconciling the bank account of Conway Company:

- **Balance per bank**: $23,900
- **Balance per company records**: $8,700
- **Bank service charges**: $50
- **Deposit in transit**: $5,500
- **Note collected by bank with $450 interest**: $9,450
- **Outstanding checks**: $11,300

a. **What is the adjusted balance on the bank reconciliation?**

Adjusted balance: **$8,600**

b. **Journalize any necessary entries for Conway Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.**

| Accounts Payable | | $23,900 |
|-------------------|---------------------|---------|
| Accounts Receivable | | $5,500 |
| Cash Short and Over | | $9,450 |
| Interest Expense | | |
| Interest Revenue | | $11,300 |

Expert Solution

Step 1: Introduction

Bank reconciliation statement refers to a reconciliation between the entries entered in the cash book (company records) and transactions appearing in the bank statement. The reasons for differences are outlined separately in the form of a bank reconciliation statement.

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