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?
b. Journalize any necessary entries for Conway Company based on the bank reconciliation.
Answer:
a.
$18,100 as shown below.
Bank section of reconciliation: $23,900 + $5,500 – $11,300 = $18,100
Company section of reconciliation: $8,700 + $9,450 – $50 = $18,100
b.
Miscellaneous Expense 50
Cash 50
Cash 9,450
Notes Receivable 9,000
Interest Revenue 450