A check has been correctly written and paid for by the bank in the amount of $570 is incorrectly recorded on the company's books for $57. What is the right adjustment on the bank reconciliation

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Originally Posted by radmg

a check has been correctly written and paid for by the bank in the amount of $570 is incorrectly recorded on the company's books for $57. what is the right adjustment on the bank reconciliation

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OK now find out what the check was for and credit cash $100 and debit whatevert the account the check was for

(account check belon'g too)... $100dbt
Cash... $100credit

I'm sorry not 100 but 500 which is what is owe to the books

Sorry very sleepy just post the difference of 570 to 57 which is 513 I'm so sorry

Quote:

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Originally Posted by radmg

a check has been correctly written and paid for by the bank in the amount of $570 is incorrectly recorded on the company's books for $57. what is the right adjustment on the bank reconciliation

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OK this is what you need to do, since the check was recorded in the cash account for less of the actually value you need to deduct the difference of 570 less 57 (513) to the cash account, and in the journal you need to debit that to the account that was initially affected for 513 and credit cash for 513

Cash book balance... xxxxxx
Deduct
To correct check No.x... 513

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lets say the affected account was rent expense
Dr. Rent expense... 513
Cr.Cash... 513
To correct check No. x that was uncorrectly recorded.

Hope this could help you

Pardon me expert sunshine but I'm doing my hw too and I did not read the complete question.. but when doing journals in real life accounting bank reconsiliation in least inportant than posting the rigth entry to get the rigth balance