PROBLEM 2-1 APATHY COMPANY

Book balance 65,000

Add: Credit memos 30,000
Total 95,000
Less: debit memos for service charge 2,000
Adjusted book balance 93,000

Book balance 108,000

Add: deposit in transit 80,000
Total 188,000
Less: Outstanding Checks
No. 102 15,000
No.105 30,000
No.107 50,000
Adjusted book balance 93,000

b) adjusting entries

Cash in Bank 30,000

Notes Receivable 30,000

Bank service Charge 2,000

Cash in Bank 2,000
 Sensible Compansy
Bank Reconciliation
31-Dec

Balance per bank 135,000

Add: Deposit in transit 60,000
Erroneous debit 8,000
Total 203,000
Less: Outstanding checks
Check No 770 20,000
Check No 775 30,000
Check No 777 40,000 90,000
Balance per book 113,000

b. adjusting entries

Cash in Bank 45,000

Service charge 5,000
Notes Receivable 50,000

Service charge 5,000

Cash in Bank 5,000

Accounts Receivable 10,000

Cash in Bank 10,000

Accounts Payable 27,000

Cash in Bank 27,000