Using the following information, prepare the journal entries to reconcile the bank statement.Bank balance: $6,988Book balance: $8,923Deposits in transit: $1,875Outstanding checks: $569 and $1,423Bank service charges: $75Bank incorrectly charged the account $75. The bank will correct the error next month.Check number 2456 correctly cleared the bank in the amount of $123 but posted in the accounting records as $213. This check was expensed to Utilities Expense.If an amount box does not require an entry, leave it blank.

Bank reconciliation is drawn up by the organizations to verify the cash balance as per the books of…

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: $8,923
Deposits in transit: $1,875
Outstanding checks: $569 and $1,423
Bank service charges: $75
Bank incorrectly charged the account $75. The bank will correct the error next month.
Check number 2456 correctly cleared the bank in the amount of $123 but posted in the accounting records as $213. This check was expensed to Utilities Expense.

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

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