Bank Reconciliation--Computations and Journal Entry

Bank reconciliation--computations and journal entry
The Cash account in the ledger of Pine Golf Club shows a balance of $11,925 at December 31,2015.The December 31 bank statement shows a balance of $10,440.The only reconciling items consist of:
Bank service charges of $32.
Deposit in transit of $1,813.
NSF check from customer L.Diamond in the amount of $126.
Error in recording check no.970 for utilities: check was written in the amount of $834 but was recorded in Pine's accounting records as $384.
Outstanding checks.
(a)What is the amount of the adjusted cash balance at December 31,2015?
$_______________
(b)What is the total amount of outstanding checks at December 31,2015?
$________________
(c)Record the journal entry necessary,if any,to adjust Pine's Golf Club accounting records at December 31,2015.(An explanation is not required; a single compound journal entry is acceptable.)

Correct Answer:

Verified

(a)Adjusted cash balance on Dec.31,2015:...

View Answer

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

View Full Answer For Free