Question

A bank reconciliation revealed bank charges of $11, outstanding checks of $221, and NSF checks of $90. The journal entry to cause the company records to match the correct adjusted ending cash balance includes:

Credit cash for a total of $90

Credit cash for a total of 101

Credit cash for a total of 322

Credit cash for a total of 11

None of the above

Answer 1

None of the above

Step-by-step explanation:

because checks were issued therefore bank should be credited not cash.

entry of bank charges will be: Dr bank charges $11

Cr bank $11

Entry of Outstanding check is: Dr Account payable $221

Cr Bank $221

but to correct balance entry will be adjusted to:Dr Bank 221

Cr Account payable 221.

Entry of 90$: Dr Account Payable $90

Cr Bank $90

but when we realize to know about NSF we adjust entry to

Dr Bank $90

Account payable $90

Correct balance =221+90-11=$300 for the period.