Based on the bank reconciliation performed by John, the other new staff member a

Question

Based on the bank reconciliation performed by John, the other new staff member at Daniel and Jacob, LLC, the following adjusting entries should be made: ---   A check from Elton Inc. was returned for non sufficient funds (NSF) for $1,000. The check was included in the deposit made on July 21st . --- The deposit made on July 21st for cash receipts was recorded $24,400, but bank correctly counted the deposit to be $25,400. Based on the bank reconciliation performed by John, the other new staff member at Daniel and Jacob, LLC, the following adjusting entries should be made: ---   A check from Elton Inc. was returned for non sufficient funds (NSF) for $1,000. The check was included in the deposit made on July 21st . --- The deposit made on July 21st for cash receipts was recorded $24,400, but bank correctly counted the deposit to be $25,400.

Explanation / Answer

1. Being check received from Elton Inc. was returned back to him for insufficient funds for$1000 and he included in deposit amount at the time of depositing the check, the amount of$1,000 is to be reduced in Bank reconciliation statement.

2.John deposited $25,400 in bank but he recorded the cash receipts in books $24,400, so this amount of difference of $1,000 is to be added in Bank reconciliation statement.

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