INSTRUCTIONS 1. Prepare a bank reconciliation statement for the firm as of April

Question

INSTRUCTIONS 1. Prepare a bank reconciliation statement for the firm as of April 30, 2019. 2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries April 30, 2019 Analyze: What checks remain outstanding after the bank statement has been reconciled? Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance On August 31,2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,981. The balance shown on the bank statement on the same date was $13,897 Notes a. The firm's records indicate that a $1,500 deposit dated August 30 and a $701 deposit dated b. August 31 do not appear on the bank statement A service charge of $8 and a debit memorandum of $270 covering an NSF check have not yet been entered in the firm's records. (The check was issued by Art Corts, a credit customer.) c. The following checks were issued but have not yet been paid by the bank: Check 712, $110 Check 713, $125 Check 716, $238 Check 736, $577 Check 739, $78 Check 741, $120

Explanation / Answer

Journal Entries in the books of Dry Creek Bed and Breakfast:

1.

Balance as per the Cash Account - $12,981 Less: Deposits not reflecting in bank account ($1,500) Deposits not reflecting in bank account ($701) Service Charges Debited by Bank ($8) Memorandum Debit( NSF Check) ($270) Add: Cheque Issued but not presented for Payment: Cheque 712 $110 Cheque 713 $125 Cheque 716 $238 Cheque 736 $577 Cheque 739 $78 Cheque 741 $120 Note Receivable Credit $2,094 Interest Received $53 Balance as per the Bank Statement $13,897

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