Rexrode Company's bank statement at January 31 showed an ending balance of $24,712.80. The unadjusted cash account balance for Rexrode is $21,245.75. The following data were gathered by Rexrode's accountant:

• Outstanding checks as of January 31: $4,895.44
• NSF check from customer: $183.62
• Debit memo related to the returned deposit: $20.00
• Credit memo for interest earned: $12.00
• Deposits in transit: $1,236.77

Required:

check if my work is good on the bank reconciliation for Rexrode Company at January 31.

Indicate how each of the required adjusting entries impact the financial statements, see chart provided.

Transcribed Image Text:

Bank Reconciliation Unadjusted bank balance Less: Outstanding checks Add: Deposits in transit True cash balance Unadjusted book balance Less: NSF check Less: Debit memo related to the returned deposit Add: Credit memo for interest True cash balance 19 $ 24,712.80 (4,895.44) 1,236.77 $ 21,054.13 $ 21,245.75 (183.62) (20.00) 12.00 $ 21,054.13 Bank Reconciliation Unadjusted bank balance Less: Outstanding checks Add: Deposits in transit True cash balance Unadjusted book balance Less: NSF check Less: Debit memo related to the returned deposit Add: Credit memo for interest True cash balance 19 $ 24,712.80 (4,895.44) 1,236.77 $ 21,054.13 $ 21,245.75 (183.62) (20.00) 12.00 $ 21,054.13

Answer rating: 100% (QA)

Your bank reconciliation for Rexrode Company at January 31 is correct Heres a breakdown of the adjustments and their impact on the financial statement... View the full answer