Exercise 6-10A Adjusting the cash account As of June 30, 2016, the bank statemen

Question

Exercise 6-10A Adjusting the cash account As of June 30, 2016, the bank statement showed an ending balance of S19,500. The unadjusted Cash account balance was $15,200. The following information is available: 1. Deposit in transit, $2,400. 3. Outstanding check, $6,690 4. Debit memo for service charge, $20. Required . Determine the true cash balance by preparing a bank reconciliation as of June 30, 2016, using the preceding information b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance

Explanation / Answer

Bank reconciliation Unadjsuted bank balance 19500 Add: deposit in transit 2400 Less: Outstanding check -6690 Adjusted bank balance 15210 Unadjusted book balance 15200 Add: Credit memo 30 Less: Debit memo -20 Adjusted cash balance 15210

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