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. bankstatement froi?? the banks Website. The balance shown on the bank statement was $28,750. The July 31, 2019, balance in the Cash account in the general ledger was $14,183. 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 $14,300 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 $1,240. c. The accounting records indicate that Check 1425 was issued for $69 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $99. d. A deposit of $790 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 $1,248, and Check 1430 for $140 f. An automatic debit of $261 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 Prepare a bank reconciliation for the firm as of July 31. WESTERN IMPORTS Bank Reconciliation Statement July 31, 2019

Explanation / Answer

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Total Expense will increase by 261

Bank Reconcilation Statement Balance on Bank Statement 28750 Additions Error in recording check by bank 40 Deposit in Transit 790 830 Deduction Check Outstanding (1429+1430) 1388 1388 Adjusted bank Balance 28192 Balance in Cash Book 14183 Additions EFT 14300 14300 Deduction Error in recoding check 30 Telephone expense 261 291 Adjusted bank Balance 28192

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