On December 31, 2022, Z Electronics Ltd., a seller of electronic products has the following  balances:  

 Cash balance per book of $5,350.  

 Bank Statement Balance: $6,000.  

Comparing the cash balance as per books versus the bank statement, the following was found:  1. The bank collected $1,190 for Z electronics through electronic funds transfer.  2. Company check No. 501 issued to Henry Ford, a creditor, for $450 that cleared the bank in  December was incorrectly entered as a cash payment on December 10 for $400.  3. Bank service charge for December amounted to $70.

4. There was an NSF charge of $320 for a check received by the company from Tom Atkins, a  customer, on account.  

5. On December 31, outstanding checks amounted to $1900.

6. $2000 worth of deposits were not included in December's bank deposits as they were in transit.  

Instructions:  

a) Prepare the bank reconciliation as of December 31. [6]

b) Prepare the necessary adjusting entries at December 31. [4]

Answer rating: 100% (QA)

Answer Bank reconciliation December 31 2022 Bnk baulence Per b... View the full answer