The following data were gathered to use in reconciling the bank account of Conway Company:
The following data were gathered to use in reconciling the bank account of Conway Company:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:**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
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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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