Bank Reconciliation-Computation and Journal Entry

Bank reconciliation-computation and journal entry
The Cash account in the ledger of Arnaz Company showed a balance of $13,307 at March 31.The bank statement,however,showed a balance of $9,936 at the same date.The only reconciling items consisted of a $4,902 deposit in transit,a bank service charge of $36,outstanding checks totaling $2,600,and an NSF check from L.Ball,one of Arnaz' customers.
(a)What is the amount of the adjusted cash balance on March 31?
(b)What is the amount of the NSF check?
(c)Record the journal entry necessary,if any,to adjust Arnaz Company's accounting records at March 31: (An explanation is not required;a single compound journal entry is acceptable. )

Correct Answer:

Verified

(a)Adjusted cash balance = $9,...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free