On August 1, 2019, the accountant for Western Imports downloaded the company\'s

Question

On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The balance shown on the bank statement was $28,850. The July 31, 2019, balance in the Cash account in the general ledger was $13,313. Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger: a. An electronic funds transfer for $15,300 from Foncier Ricard, a customer located in France, was received by the bank on July 31 b. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,260. c. The accounting records indicate that Check 1425 was issued for $60 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $90. d. A deposit of $810 made after banking hours on July 31 did not appear on the July 31 bank statement e. The following checks were outstanding: Check 1429 for $1,258, and Check 1430 for $150 f. An automatic debit of $271 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records Required 1. Prepare a bank reconciliation for the firm as of July 31 2. Record general journal entries for the items on the bank reconiliation that must be journalized. Analyze: What effect on total expenses occurred as a result of the general journal entries recorded? Complete this question by entering your answers in the tabs below. General Journal Bank Rec Analyze

Explanation / Answer

Bank Reconciliation Statement Balance as per bank Statement 28850 Add: Error in recording check 60 Add: Deposits in transit 810 29720 Less: Outstanding checks 1408 Adjusted balance as per books 28312 Balance as per books 13313 Add: EFT from customer 15300 28613 Less: Errror in recording the supplies check 30 Less: Debit for telephone service 271 Adjusted balance as per books 28312 Journal entries: Accounts title and explanations Debit $ Credit $ Cash Account Dr. 15300      Accounts receivable-Foncier Ricard 15300 Supplies Account Dr. 30      Cash account 30 Utilities expense Account Dr. 271      Cash account 271

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