On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,300. The balance shown on the bank statement on the same date was $13,207. Notes a. The firm's records indicate that a $1,470 deposit dated August 30 and a $703 deposit dated August 31 do not appear on the bank statement b. A service charge of $9 and a debit memorandum of $330 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: $112 Check 712, Check 713, $327 Check 716, Check 736, Check 739, Check 741, $240 $579 5.80 $122 d. A credit memorandum shows that the bank collected a $2,094 note receivable and interest of $65 for the firm. These amounts have not yet been entered in the firm's records. Required: 1. Prepare a bank reconciliation statement for the firm as of August 31. 2. Record general journal entries for items on the bank reconciliation statement that must be journalized. Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,300. The balance shown on the bank statement on the same date was $13,207. Notes a. The firm's records indicate that a $1,470 deposit dated August 30 and a $703 deposit dated August 31 do not appear on the bank statement b. A service charge of $9 and a debit memorandum of $330 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: $112 Check 712, Check 713, $327 Check 716, Check 736, Check 739, Check 741, $240 $579 5.80 $122 d. A credit memorandum shows that the bank collected a $2,094 note receivable and interest of $65 for the firm. These amounts have not yet been entered in the firm's records. Required: 1. Prepare a bank reconciliation statement for the firm as of August 31. 2. Record general journal entries for items on the bank reconciliation statement that must be journalized. Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,300. The
balance shown on the bank statement on the same date was $13,207.
Notes
a. The firm's records indicate that a $1,470 deposit dated August 30 and a $703 deposit dated August 31 do not appear on the bank
statement.
b. A service charge of $9 and a debit memorandum of $330 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,
Check 713,
Check 716,
Check 736,
Check 739,
Check 741,
$112
$127
$240
$579
5.80
$122
Return to qu
d. A credit memorandum shows that the bank collected a $2,094 note receivable and interest of $65 for the firm. These amounts have
not yet been entered in the firm's records.
Required:
1. Prepare a bank reconciliation statement for the firm as of August 31.
2. Record general journal entries for items on the bank reconciliation statement that must be journalized.
Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
Transcribed Image Text:as of August 31.
2. Record general journal entries for items on the bank reconciliation statement that must be jo
Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fur
Complete this question by entering your answers in the tabs below.
Bank Rec
General
Journal
Net
effect
Analyze
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundame
equation?
increase
Answer is not complete.
by $ 339
< General Journal
Analyze
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