Russell company assembled the following information in completing its march bank reconciliation: balance per bank, $11,460 outstanding checks, $2,325 deposits in transit, $3,750 nsf check, $240 bank service charge, $75 cash balance per books, $13,200 the adjusting entry that the company will journalize as a result of this reconciliation will:

Explanation:

Balance as per bank                    $11,460

Less: Outstanding Chq                ($2,325)

Add: Deposit In Transit                 $3,750

         Bank Charges                       $75

         NSF Chq                                $240

Balance as per cash book           $13,200

From the above reconciliation,  The company will:

1. Debit : The expense account      $2,325

   Credit: The bank account            $2,325

Being Expense incurred but is yet to reflect in the bank statement

2. Debit :  Bank account                  $3,750

   Credit :  Sales / Other Income     $3,750

Being cash deposit paid into bank but is yet to reflect in the statement

3. Debit: Bank Account                   $75

   Credit: Bank Charge Expense    $75

Being bank charges deducted from account

4. Debit : Bank Account                   $240  

    Credit: Sales/ Other Income        $240

Being  Chq paid into the account but has not cleared into the account

The above journal entries will reconcile the cash book balance with the Bank statement balance for the period March.            

answer; ///decision making under risk;