Bank Reconciliation--Computations and Journal Entry

question 120

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 31,2015.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 31,2015?
$_______________
(b)What is the total amount of outstanding checks at December 31,2015?
$________________
(c)Record the journal entry necessary,if any,to adjust Pine's Golf Club accounting records at December 31,2015.(An explanation is not required; a single compound journal entry is acceptable.)

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Definitions:

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, effectively maximizing overall social welfare.

Productive Efficiency

A situation where an economy or entity cannot produce more of one good without reducing the output of another good, indicating optimal resource allocation.

Monopoly Power

Monopoly power refers to the ability of a firm to control market prices and production, typically due to lack of competition in the marketplace.

Product Variety

The assortment of different products or services offered by a firm or available in a market.