An examination of the accounting records and the bank statement of Johnson Business revealed the following:
$\begin{array}{lr}
\text { Balance in Johnson's cash account } & \$ 25000 \
\text { Balance according to the bank } & \$ 30000 \
\text { Outstanding cheques } & \$ 7600 \
\text { Deposits in transit } & \$ 17500 \
\text { Bank fees } & 100 \
\text { Direct deposits to the bank } & \$ 15000
\end{array}$
Prepare a bank reconciliation, and identify the items that require adjustments to Johnson's records.

Question

An examination of the accounting records and the bank statement of Johnson Business revealed the following:
 $\begin{array}{lr}
\text { Balance in Johnson's cash account } & \$ 25000 \
\text { Balance according to the bank } & \$ 30000 \
\text { Outstanding cheques } & \$ 7600 \
\text { Deposits in transit } & \$ 17500 \
\text { Bank fees } & 100 \
\text { Direct deposits to the bank } & \$ 15000
\end{array}$
 Prepare a bank reconciliation, and identify the items that require adjustments to Johnson's records.

Quizplus · Accepted Answer

The Answer of An examination of the accounting records and the bank statement of Johnson Business revealed the following:
 $\begin{array}{lr}
\text { Balance in Johnson's cash account } & \$ 25000 \
\text { Balance according to the bank } & \$ 30000 \
\text { Outstanding cheques } & \$ 7600 \
\text { Deposits in transit } & \$ 17500 \
\text { Bank fees } & 100 \
\text { Direct deposits to the bank } & \$ 15000
\end{array}$
 Prepare a bank reconciliation, and identify the items that require adjustments to Johnson's records.

An Examination of the Accounting Records and the Bank Statement