Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31.August 31 cash receipts of $3,140 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check.Outstanding checks as of August 31 total $3,020.In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services. Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation.

The journal entries are prepared to record the transactions on regular basis. The adjustment entries are prepared to adjust the revenue and expense of the current period. JOURNAL S. NoParticulars Debit amt $Credit amt $1.Accounts receivable310Cash 310(To record NSF check) 2.Miscellaneous expenses 210Cash 210(To record bank service charge) The detailed solution has been provided under step 2.

Answered: Organic Food Company's Cash account…

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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Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31.

August 31 cash receipts of $3,140 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.
The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check.
Outstanding checks as of August 31 total $3,020.
In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.
The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services.

Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation.

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