The following data were gathered to use in reconciling the bank account of Azalea Company: Balance per bank $25,000 Balance per company records 27,475 Bank service charges 75 Deposit in transit 7,500 NSF check 3,400 Outstanding checks 9,000 a

Accounting Jan 22, 2021

The following data were gathered to use in reconciling the bank account of Azalea Company:
Balance per bank $25,000
Balance per company records 27,475
Bank service charges 75
Deposit in transit 7,500
NSF check 3,400
Outstanding checks 9,000
a. What is the adjusted balance on the bank reconciliation?
b. Journalize any necessary entries for Azalea Company based on the bank reconciliation?

Expert Solution

a. $24,000 as shown below.

Bank section of reconciliation: $25,500 + $7,500 – $9,000 = $24,000
Company section of reconciliation: $27,475 – $75 – $3,400 = $24,000

b. Accounts Receivable............................................. 3,400

Miscellaneous Expense............................................... 75

Cash.......................................................................... 3,475

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