The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $18,750 Balance per company records 9,770 Bank service charges 20 Deposit in transit 2,950 Note collected by bank with $110 interest 5,400 Outstanding checks 6,550   Instructions a

Subject:AccountingPrice: Bought3

Share With

The following data were gathered to use in reconciling the bank account of Reddan Company:

Balance per bank	$18,750
Balance per company records	9,770
Bank service charges	20
Deposit in transit	2,950
Note collected by bank with $110 interest	5,400
Outstanding checks	6,550

	Instructions
a.	What is the adjusted balance on the bank reconciliation?
b.	Journalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles.

 

 

b. Journalize any necessary entries for Reddan Company based on the bank reconciliation on December 31. Refer to the Chart of Accounts for exact wording of account titles.

 

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5

 

 

 

 

 

 

CHART OF ACCOUNTS
Reddan Company
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment   LIABILITIES 210 Accounts Payable 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable   EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends	REVENUE 410 Sales 610 Interest Revenue   EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense