On August 31, 2019, the balance in the checkbook and the Cash account of the Dry

Question

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,316. The balance shown on the bank statement on the same date was $13,217.

Notes

The firm’s records indicate that a $1,490 deposit dated August 30 and a $705 deposit dated August 31 do not appear on the bank statement.

A service charge of $7 and a debit memorandum of $340 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)

The following checks were issued but have not yet been paid by the bank:

  

A credit memorandum shows that the bank collected a $2,104 note receivable and interest of $67 for the firm. These amounts have not yet been entered in the firm’s records.

Required:

Prepare a bank reconciliation statement for the firm as of August 31.

Record general journal entries for items on the bank reconciliation statement that must be journalized.

Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

Check 712, $ 114 Check 713, $ 129 Check 716, $ 242 Check 736, $ 581 Check 739, $ 82 Check 741, $ 124 Week 3 Assignment 2 Bank Reconcillation Statement 2019 Balance on bank statement Additions: points eBook Deductions: References Total deductions Adjusted bank balance Balance in books Additions: Deductions Ad usted book balance Doneral Journa Prev

Explanation / Answer

The above entries will have the effect of increasing the assets by (cah) by $60, and increasing the stockholders' equity (retained earnings) by $60.

Dry Creek Bed and Breakfast Bank Reconciliation August , 2019 Balance as per bank 13217 Balance as per cash book 12316 Additions: Additions: Deposits in transit * 2195 Outstanding checks ** 1272 Bank charges 7 Note collected by bank 2104 NSF check 340 Interest on the note 67 Total Additions 2542 Total Additions 3443 Deductions: Deductions: Outstanding checks ** 1272 Deposits in transit * 2195 Note collected by bank 2104 Bank charges 7 Interest on the note 67 NSF check 340 Total Deductions 3443 Total Deductions 2542 Balance as per cash book 12316 13217 Deposits in transit * August 30 deposit 1490 August 31 deposit 705 2195 Outstanding checks ** Check # 712 114 Check # 713 129 Check # 716 242 Check # 736 581 Check # 739 82 Check # 741 124 1272

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.