Bank Reconciliation--Computations and Journal Entry

question 121

Essay

Bank reconciliation--computations and journal entry
The Cash account in the ledger of Pine Golf Club shows a balance of $11,925 at December 31, 2009. The December 31 bank statement shows a balance of $10,440. The only reconciling items consist of:
Bank service charges of $32.
Deposit in transit of $1,813.
NSF check from customer L. Diamond in the amount of $126.
Error in recording check no. 970 for utilities: check was written in the amount of $834 but was recorded in Pine's accounting records as $384.
Outstanding checks.
(a) What is the amount of the adjusted cash balance at December 31, 2009?
$_______________
(b) What is the total amount of outstanding checks at December 31, 2009?
$_______________
(c) Give the journal entry necessary, if any, to adjust Pine's Golf Club accounting records at December 31, 2006. (An explanation is not required; a single compound journal entry is acceptable.)

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Definitions:

At-Will Employment

An employment arrangement where either the employer or the employee can end the employment at any time, for any reason that is not illegal, with or without notice.

United States

A country comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and influential culture.

Until

Refers to a point in time up to which an action or condition is valid or in effect.

Disparate-Treatment Discrimination

Discrimination in the workplace that occurs when an employee is treated unfavorably because of characteristics such as race, gender, age, or religion.