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The following information is available to the accountant ofHilary Company when preparing the monthly bankreconciliation:
Outstandingcheques $500
Bank servicecharges 50
Deposits intransit 1,500
Customer note receivable collected bybank 975
Cash balance per ledger (prior toreconciliation) 1,340
a). Assuming the bank doesnât make any error, what should be theunadjusted cash balance on bank statement?
b). Prepare adjusting journal entries to recordall the necessary adjustments to bring the Cash account to itscorrect balance. Note: No need to present the bankreconciliation.
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