balance $ 14,237 Book balance $ 13,162 posit in transit tstanding checks +4,500 Bank service fees -50 -3,900 Note collected +1,725 sted bank balance $ 14,837 Adjusted book balance $ 14,837 mal entry that Clayborn must record as a result of the bank reconciliation includes:

balance $ 14,237 Book balance $ 13,162 posit in transit tstanding checks +4,500 Bank service fees -50 -3,900 Note collected +1,725 sted bank balance $ 14,837 Adjusted book balance $ 14,837 mal entry that Clayborn must record as a result of the bank reconciliation includes:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

41)
Franklin Company's bank reconciliation as of August 31 is shown below.
Bank balance
+ Deposit in transit
-
Outstanding checks
Adjusted bank balance
$ 14,237
Book balance
$ 13,162
+4,500
Bank service fees
-50
-3,900
Note collected
+1,725
$ 14,837
Adjusted book balance
$ 14,837
A journal entry that Clayborn must record as a result of the bank reconciliation includes:
I
A) Debit Cash $4,500; credit Sales $4,500.
B) Debit Cash $1,725; credit Notes Receivable $1,725.
C) Debit Cash $50; credit Bank Service Fee Expense $50.
D) Debit Miscellaneous Expense $3,900; credit Cash $3,900.
E) Debit Notes Receivable $1,725; credit Cash $1,725.

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