The following data were gathered to use in reconciling the bank account of Torres Company:

The following data were gathered to use in reconciling the bank account of Torres Company:

Balance per bank $12,175

Balance per company records 9,480

Bank service charges 50

Deposit in transit 1,800

NSF check 1,250

Outstanding checks 5,795

a. What is the adjusted balance on the bank reconciliation?

b. Journalize any necessary entries for Torres Company based on the bank reconciliation.

Answer:

a. $8,180 as shown below.

Bank section of reconciliation: $12,175 + $1,800 – $5,795 = $8,180

Company section of reconciliation: $9,480 – $50 – $1,250 = $8,180

b. 

Accounts Receivable 1,250

Miscellaneous Expense 50

                 Cash 1,300