Using the following information, prepare the journal entries to reconcile the bank statement.Bank balance: $6,988Book balance: $8,730Deposits in transit: $1,701Outstanding checks: $579 and $1,423Bank service charges: $25Bank incorrectly charged the account $25. The bank will correct the error next month.Check number 2456 correctly cleared the bank in the amount of $245 but posted in the accounting records as $254. This check was expensed to Utilities Expense.If an amount box does not require an entry, leave it blank. CashCash CashCash - Select -- Select - - Select -- Select -

Bank Reconciliation Particular Amount ($) Bank Balance as per bank passbook 6988…

Answered: Using the following information,…

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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Using the following information, prepare the journal entries to reconcile the bank statement.

Bank balance: $6,988
Book balance: $8,730
Deposits in transit: $1,701
Outstanding checks: $579 and $1,423
Bank service charges: $25
Bank incorrectly charged the account $25. The bank will correct the error next month.
Check number 2456 correctly cleared the bank in the amount of $245 but posted in the accounting records as $254. This check was expensed to Utilities Expense.

If an amount box does not require an entry, leave it blank.

		Cash	Cash
		Cash	Cash
		- Select -	- Select -
		- Select -	- Select -

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