On August 1, 20X1, the accountant for Midwest Imports downloaded the company's July 31, 20X1, bank statement from the bank's website. The balance shown on the bank statement was $28,750. The July 31, 20X1, balance in the Cash account in the general ledger was $14,183. Ann Chen, the accountant for Midwest Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger: a. An electronic funds transfer for $14,300 from Fabien Ricard, a customer located in France, was received by the bank on July 31. b. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,240. c. The accounting records indicate that Check 1425 was issued for $69 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $99. d. A deposit of $790 made after banking hours on July 31 did not appear on the July 31 bank statement. e. The following checks were outstanding: Check 1429 for $1,248 and Check 1430 for $140. f. An automatic debit of $261 on July 31 from MidComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records. Required: 1. Prepare a bank reconciliation for the firm as of July 31. 2. Record general journal entries for the items on the bank reconciliation that must be journalized.
On August 1, 20X1, the accountant for Midwest Imports downloaded the company's July 31, 20X1, bank statement from the bank's website. The balance shown on the bank statement was $28,750. The July 31, 20X1, balance in the Cash account in the general ledger was $14,183. Ann Chen, the accountant for Midwest Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger: a. An electronic funds transfer for $14,300 from Fabien Ricard, a customer located in France, was received by the bank on July 31. b. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,240. c. The accounting records indicate that Check 1425 was issued for $69 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $99. d. A deposit of $790 made after banking hours on July 31 did not appear on the July 31 bank statement. e. The following checks were outstanding: Check 1429 for $1,248 and Check 1430 for $140. f. An automatic debit of $261 on July 31 from MidComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records. Required: 1. Prepare a bank reconciliation for the firm as of July 31. 2. Record general journal entries for the items on the bank reconciliation that must be journalized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On August 1, 20X1, the accountant for Midwest Imports downloaded the company's July 31, 20X1, bank statement from the bank's
website. The balance shown on the bank statement was $28,750. The July 31, 20X1, balance in the Cash account in the general ledger
was $14,183.
Ann Chen, the accountant for Midwest Imports, noted the following differences between the bank's records and the
company's Cash account in the general ledger:
a. An electronic funds transfer for $14,300 from Fabien Ricard, a customer located in France, was received by the bank on July 31.
b. Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,240.
c. The accounting records indicate that Check 1425 was issued for $69 to make a purchase of supplies. However, examination of the
check online showed that the actual amount of the check was for $99.
d. A deposit of $790 made after banking hours on July 31 did not appear on the July 31 bank statement.
e. The following checks were outstanding: Check 1429 for $1,248 and Check 1430 for $140.
f. An automatic debit of $261 on July 31 from MidComm for telephone service appeared on the bank statement but had not been
recorded in the company's accounting records.
Required:
1. Prepare a bank reconciliation for the firm as of July 31.
2. Record general journal entries for the items on the bank reconciliation that must be journalized.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education