Account For Cash And Cash Equivalents Practice Test

A bank reconciliation reveals that a customer's $3,000 check was returned NSF (non-sufficient funds) and the bank charged a $25 NSF fee. Both items appear on the bank statement but have not been recorded by the company. What journal entry should the company record?

A bank statement shows a balance of $18,600. The following reconciling items are identified: deposits in transit of $4,200, outstanding checks of $6,500, and a bank error in which the bank incorrectly charged the company's account $800 for another customer's check. What is the adjusted bank balance?