Blue Company Is Unable to Reconcile the Bank Balance at January

question 226

Essay

Blue Company is unable to reconcile the bank balance at January 31. Blue's reconciliation is as follows. $$\begin{array} { l r } \text { Cash balance per bank } & \$ 5,300 \\\text { Add: NSF check } & 1,490 \\\text { Less: Bank service charge } & \underline{25 }\\\text { Adjusted balance per bank } & \$ 6,765 \\\\\text { Cash balance per books } & \$ 5,905 \\\text { Less: Deposits in transit } & 950 \\\text { Add: Outstanding checks } & \underline{1,860 }\\\text { Adjusted balance per books } & \underline{\$ 16,815} \\\end{array}$$ Instructions
(a) Prepare a correct bank reconciliation.
(b) Journalize the entries required by the reconciliation.

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Definitions:

Power Assertion

A disciplinary technique that involves the use of authority, demands, or physical force to enforce child compliance, often criticized for its potential negative psychological effects.

Induction

A method of reasoning in which specific observations or instances are used to form a general conclusion or principle.

Manipulation

The act of controlling or influencing someone or something to achieve a desired outcome, often without the awareness of the person being influenced.

Adolescence

The period of life transitioning from childhood to adulthood, typically involving significant physical, psychological, and social changes.