The unadjusted cash account balance for Carson Company at December 31 is $12,615. The bank statement showed an ending balance of $18,250 at December 31. The following information is available from an examination of the bank statement and the company's accounting records:
$\begin{array}{llr}
\text { Bank service charge } &\$20\
\text {Outstanding checks } &7,500\
\text { NSF check from a customer } &425\
\text { Deposits in transit } &1,222\
\end{array}$
Check number 433 for the purchase of inventory was written correctly and paid by the bank correctly for $432, but was recorded on the books at $234. Carson uses the perpetual inventory system.Required:Prepare a bank reconciliation as of December 31.Indicate how each of the required adjusting entries impact the financial statements.

Question

The unadjusted cash account balance for Carson Company at December 31 is $12,615. The bank statement showed an ending balance of $18,250 at December 31. The following information is available from an examination of the bank statement and the company's accounting records:
 $\begin{array}{llr}
  \text { Bank service charge } &\$20\
 \text {Outstanding checks  } &7,500\
 \text { NSF check from a customer } &425\
 \text { Deposits in transit } &1,222\
\end{array}$
 Check number 433 for the purchase of inventory was written correctly and paid by the bank correctly for $432, but was recorded on the books at $234. Carson uses the perpetual inventory system.Required:Prepare a bank reconciliation as of December 31.Indicate how each of the required adjusting entries impact the financial statements.

Quizplus · Accepted Answer

The Answer of The unadjusted cash account balance for Carson Company at December 31 is $12,615. The bank statement showed an ending balance of $18,250 at December 31. The following information is available from an examination of the bank statement and the company's accounting records:
 $\begin{array}{llr}
  \text { Bank service charge } &\$20\
 \text {Outstanding checks  } &7,500\
 \text { NSF check from a customer } &425\
 \text { Deposits in transit } &1,222\
\end{array}$
 Check number 433 for the purchase of inventory was written correctly and paid by the bank correctly for $432, but was recorded on the books at $234. Carson uses the perpetual inventory system.Required:Prepare a bank reconciliation as of December 31.Indicate how each of the required adjusting entries impact the financial statements.

The Unadjusted Cash Account Balance for Carson Company at December