### Bank Reconciliation Journal EntriesUsing the following information, prepare the journal entries to reconcile the bank statement:- **Bank balance**: $6,988- **Book balance**: $8,866- **Deposits in transit**: $1,832- **Outstanding checks**: $589 and $1,623- **Bank service charges**: $50- **Bank incorrectly charged the account**: $50. The bank will correct the error next month.- **Check number 2456**: Correctly cleared the bank in the amount of $417 but posted in the accounting records as $471. This check was expensed to Utilities Expense.**Instructions:**If an amount box does not require an entry, leave it blank.### Journal Entry Fields1. **Dropdown** (Account Title) | **Debit** | **Credit**2. **Dropdown** (Account Title) | **Debit** | **Credit**3. **Dropdown** (Account Title) | **Debit** | **Credit**Make sure to select the correct accounts and amounts for each transaction involved in reconciling the bank statement.

Answered: Bank balance: $6,988 Book balance:…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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### Bank Reconciliation Journal Entries

Using the following information, prepare the journal entries to reconcile the bank statement:

- **Bank balance**: $6,988
- **Book balance**: $8,866
- **Deposits in transit**: $1,832
- **Outstanding checks**: $589 and $1,623
- **Bank service charges**: $50
- **Bank incorrectly charged the account**: $50. The bank will correct the error next month.
- **Check number 2456**: Correctly cleared the bank in the amount of $417 but posted in the accounting records as $471. This check was expensed to Utilities Expense.

**Instructions:**
If an amount box does not require an entry, leave it blank.

### Journal Entry Fields

1. **Dropdown** (Account Title) | **Debit** | **Credit**
2. **Dropdown** (Account Title) | **Debit** | **Credit**
3. **Dropdown** (Account Title) | **Debit** | **Credit**

Make sure to select the correct accounts and amounts for each transaction involved in reconciling the bank statement.

Expert Solution

Introduction

Journal entries are initial recording of all the monetary business transactions in a systematical order. They are recorded in chronological order as per occurrence of the event.

There are various types of journal entries such as: adjusting entries, closing entries, and regular entries.Journal entries serve as a foundation for further accounting operations such as the preparation of ledger accounts, trial balances, financial statements, and so on.

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