Great Falls Company's bank reconciliation as of February 28 is shown below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Great Falls Company's Bank Reconciliation as of February 28
#### Reconciliation Details:
- **Bank Balance**: $38,343
- **+ Deposit in Transit**: $3,300
- **- Outstanding Checks**: $2,080
- **Adjusted Bank Balance**: $39,563
- **Book Balance**: $38,818
- **+ Note Collection**: $815
- **- Check Printing**: $70
- **Adjusted Book Balance**: $39,563
#### Journal Entry Requirement:
After completing the bank reconciliation, Great Falls Company needs to record the following journal entry as part of the reconciliation process:
**Multiple Choice Options:**
1. **Debit Notes Payable $815; Credit Cash $815.**
2. **Debit Cash $815; Credit Notes Receivable $815.**
3. **Debit Cash $3,300; Credit Sales $3,300.**
4. **Debit Cash $3,300; Credit Accounts Receivable $3,300.**
5. **Debit Miscellaneous Expense $70; Credit Accounts Payable $70.**
The correct journal entry needs to be selected based on the bank reconciliation results.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87314332-e2f5-4784-8bd6-50bd771df639%2F688f3ea0-9494-4769-a9b1-50f1e6cc2af5%2F18s0pxa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Great Falls Company's Bank Reconciliation as of February 28
#### Reconciliation Details:
- **Bank Balance**: $38,343
- **+ Deposit in Transit**: $3,300
- **- Outstanding Checks**: $2,080
- **Adjusted Bank Balance**: $39,563
- **Book Balance**: $38,818
- **+ Note Collection**: $815
- **- Check Printing**: $70
- **Adjusted Book Balance**: $39,563
#### Journal Entry Requirement:
After completing the bank reconciliation, Great Falls Company needs to record the following journal entry as part of the reconciliation process:
**Multiple Choice Options:**
1. **Debit Notes Payable $815; Credit Cash $815.**
2. **Debit Cash $815; Credit Notes Receivable $815.**
3. **Debit Cash $3,300; Credit Sales $3,300.**
4. **Debit Cash $3,300; Credit Accounts Receivable $3,300.**
5. **Debit Miscellaneous Expense $70; Credit Accounts Payable $70.**
The correct journal entry needs to be selected based on the bank reconciliation results.
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