Calculate the adjusted bank balance


Response to the following problem:

Green Valley Bank sent Comstock Industries their end of month bank statement for July. The end of month balance by the bank is $11,237.00. The statement shows that a deposit for $4,250 is in transit at the end of the statement period.

The statement also revealed that checks for $87.00, $105.00, and $95.00 are outstanding. Green Valley collected a 90 day, 12% interest $4,000.00 note receivable, charging $20 for the service. No interest has been accrued on the note. The bank charges a monthly account fee of $35.00.

The end of month balance per company books is $11,135.00.

Calculate the adjusted bank balance, and complete the journal entries for the reconciliation.

 

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Managerial Accounting: Calculate the adjusted bank balance
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