Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $$\begin{array} { l r }
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } & \underline{25 }\
\text { Adjusted balance per bank } & \$ 6,765 \\
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } & \underline{1,860 }\
\text { Adjusted balance per books } & \underline{\$ 16,815} \

\end{array}$$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

Question

Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $$\begin{array} { l r } 
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } &  \underline{25 }\
\text { Adjusted balance per bank } & \$ 6,765 \\
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } &  \underline{1,860 }\
\text { Adjusted balance per books } &  \underline{\$ 16,815} \

\end{array}$$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

Quizplus · Accepted Answer

The Answer of Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $$\begin{array} { l r } 
\text { Cash balance per bank } & \$ 5,300 \
\text { Add: NSF check } & 1,490 \
\text { Less: Bank service charge } &  \underline{25 }\
\text { Adjusted balance per bank } & \$ 6,765 \\
\text { Cash balance per books } & \$ 5,905 \
\text { Less: Deposits in transit } & 950 \
\text { Add: Outstanding checks } &  \underline{1,860 }\
\text { Adjusted balance per books } &  \underline{\$ 16,815} \

\end{array}$$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

Blue Company Is Unable to Reconcile the Bank Balance at January