gnment 0 Help Save& Exit Submit On August 31, 2019, the balance in the checkbook

Question

gnment 0 Help Save& Exit Submit On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,327. The balance shown on the bank statement on the same date was $13,222 Notes a. The firm's records indicate that a $1,500 deposit dated August 30 and a $706 deposit dated August 31 do not appear on the bank statement b. A service charge of $9 and a debit memorandum of $345 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, $115 Check 713, $130 Check 716, $243 Check 736, $582 Check 739, $ 83 Check 741 $125 d. A credit memorandum shows that the bank collected a $2109 note recevable and interest of $68 for the firm. These amounts have not yet been entered in the firm's records

Explanation / Answer

Bank reconciliation Ending balance as per bank statement 13222 Add Deposit in transit 2206 2206 Less Outstanding checks 1278 1278 Adjusted bank balance 14150 Ending balance as per cash account 12327 Add Notes receivable 2109 Interest revenue 68 2177 Less Service charges 9 NSF check 345 354 Adjusted cash balance 14150 Bank reconciliation Ending balance as per bank statement 13222 Add Deposit in transit 2206 2206 Less Outstanding checks 1278 1278 Adjusted bank balance 14150 Ending balance as per cash account 12327 Add Notes receivable 2109 Interest revenue 68 2177 Less Service charges 9 NSF check 345 354 Adjusted cash balance 14150 Journal entries Cash 2177           Notes receivable 2109           Interest revenue 68 Misc. expense 9 Accounts payable 345           Cash 354

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