The August 31 balance shown on the bank statement is $9,810. b. There is a depos
ID: 2346204 • Letter: T
Question
The August 31 balance shown on the bank statement is $9,810.b. There is a deposit in transit of $1,260 at August 31.
c. Outstanding checks at August 31 totaled $1,890.
d.
Interest credited to the account during August but not recorded on the company's books amounted to $108.
e.
A bank charge of $36 for checks was made to the account during August. Although the company was expecting a charge, its amount was not known until the bank statement arrived.
f.
In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $631 had been recorded as a disbursement of $361.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,378.
Required:
(a)
Prepare the adjusting journal entry (or entries) that should be prepared to reflect the reconciling items. (Omit the "$" sign in your response.)
General Journal Debit Credit
(b)
What is the amount of cash to be included in the August 31 balance sheet for the bank account reconciled? (Omit the "$" sign in your response.)
Amount of cash $
Explanation / Answer
Solution:
a) Preparing the Adjusting Journal Entries that Should be Prepared to Reflecct the Reconciling Items:
b) Calculation of the Amount of Cash to be Inclucded in the August 31 Balance Sheet for the Bank Account Reconciled:
Event General Journal Debit Credit 1 Miscellaneous expense $36 Accounts payable $270 Cash $198 Interest Revenue $108Related Questions
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