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

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

Balance per bank $23,900

Balance per company records 8,700

Bank service charges 50

Deposit in transit 5,500

Note collected by bank with $450 interest 9,450

Outstanding checks 11,300

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

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

Answer:

a. $18,100 as shown below.

Bank section of reconciliation: $23,900 + $5,500 – $11,300 = $18,100

Company section of reconciliation: $8,700 + $9,450 – $50 = $18,100

b. 

Miscellaneous Expense 50

                Cash 50

Cash 9,450

        Notes Receivable 9,000

        Interest Revenue  450