On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. Notes The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 102 Check 713, $ 117 Check 716, $ 230 Check 736, $ 569 Check 739, $ 70 Check 741, $ 112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Record general journal entries for items on the bank reconciliation statement that must be journalized. Date the entries August 31, 20X1. Record the deposit in transit. Record the outstanding checks. Record the bank service fee. Record the note collected by the bank plus interest. Record the returned check. Analyze:
On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. Notes The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 102 Check 713, $ 117 Check 716, $ 230 Check 736, $ 569 Check 739, $ 70 Check 741, $ 112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Record general journal entries for items on the bank reconciliation statement that must be journalized. Date the entries August 31, 20X1. Record the deposit in transit. Record the outstanding checks. Record the bank service fee. Record the note collected by the bank plus interest. Record the returned check. Analyze:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157.
Notes
- The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement.
- A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
- The following checks were issued but have not yet been paid by the bank:
| Check 712, | $ | 102 | |
| Check 713, | $ | 117 | |
| Check 716, | $ | 230 | |
| Check 736, | $ | 569 | |
| Check 739, | $ | 70 | |
| Check 741, | $ | 112 | |
- A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records.
Required:
- Record general
journal entries for items on thebank reconciliation statement that must be journalized. Date the entries August 31, 20X1.
- Record the deposit in transit.
- Record the outstanding checks.
- Record the bank service fee.
- Record the note collected by the bank plus interest.
- Record the returned check.
-
Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental
- Analyze
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
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