Shown the accounting entries that must be made by Matrix Inc. in journal entry a

Question

Shown the accounting entries that must be made by Matrix Inc. in journal entry and T-Account format.

POST INC. BANK RECONCILIATION Cash balance per bank $8,200 Cash balance per books (general ledger) $6,500 Outstanding checks $2,460 Check mailed to the bank for deposit had not reached the bank by the statement date. $500 NSF check returned by the bank for accounts receivable $100 July interest earned on the bank statement $20 Check no. 700 for misc. expense cleared the bank for $200; erroneously recorded in our books for $20

Explanation / Answer

CASH BALANCE AS PER BOOKS [GENERAL LEDGER]= 6500

ADJUSTMENTS:

1]ADD:OUTSTANDING CHECKS = 2460

2]LESS:CHEQUES MAILED FOR DEPOSIT $ NOT REACHED = (500)

3]LESS:NSF CHEQUES RETURNED = (100)

4]ADD:JULY INTEREST = 20

5]LESS: UNCORRECT ENTRY OF PAYMENT[200-20] =(180)

BALANCE AS PER BANK = 8200

ACCOUNTING ENTERIES

1] DEBIT CASH BOOK [GENERAL LEDGER]= 2460

CREDIT OUTSTANDING CHEQUES = 2460

2]DEBIT DEPOSIT IN TRANSIT = 500

CREDIT CASH BOOK [GENERAL LEDGER]= 500

3]DEBIT ACCOUNTS RECIEVABLE = 100

   CREDIT CASH BOOK [GENERAL LEDGER]= 100

4] DEBIT CASH BOOK [GENERAL LEDGER]= 20

CREDIT BANK INTEREST FOR JULY =20

5] DEBIT EXPENSE = 180

   CREDIT CASH BOOK [GENERAL LEDGER]= 180

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