I need help with an accounting problem

E7-6 Sally Rice is unable to reconcile the bank balance at January 31. Sally’s reconciliation is shown here.

Prepare bank reconciliation and adjusting entries.

Cash balance per bank


Add: NSF check


Less: Bank service charge


Adjusted balance per bank


Cash balance per books


Less: Deposits in transit


Add: Outstanding checks


Adjusted balance per books



  • (a) What is the proper adjusted cash balance per bank?
  • (b) What is the proper adjusted cash balance per books?
  • (c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books.

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