Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.

Problem 1: The bank statement for Strivers, Inc. shows a balance of $9,410 on July 31, while the cash-in-bank account in Striver's books has a balance of $6,625 on this date, after all cash activity for the month July had been posted. Prepare a bank reconciliation based on the starting balances above, and the following additions and deductions: a) Checks outstanding, $3,113 b) Deposits still in transit, $1,733 c) Checking account service charges, $38. d) A note receivable was collected by the bank, $1,850 (this amount includes interest revenue of $50). e) A check marked 'NSF' for $425 was returned; the customer was supposedly paying Strivers on account. f) A check for $746 paid on account by Strivers, on July 15th had been incorrectly recorded in Strivers general journal as $764. Problem 2: Prepare the two journal entries that are required by the just completed reconciliation from Problem 1, above, for July 31.

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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