Problem 9.4A (Static) Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. LO 9-5, 9-6 On August 31, 20X1, the balance in the checkbook and the Cash account of the Sonoma Creek Bed and Breakfast was $13,031. The balance shown on the bank statement on the same date was $13,997. Notes The firm’s records indicate that a $1,600 deposit dated August 30 and a $601 deposit dated August 31 do not appear on the bank statement. A service charge of $28 and a debit memorandum of $230 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Andy Stein, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 120 Check 713, $ 130 Check 716, $ 250 Check 736, $ 577 Check 739, $ 78 Check 741, $ 120 A credit memorandum shows that the bank collected a $2,095 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Prepare a bank reconciliation statement for the firm as of August 31. 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?
Problem 9.4A (Static) Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. LO 9-5, 9-6 On August 31, 20X1, the balance in the checkbook and the Cash account of the Sonoma Creek Bed and Breakfast was $13,031. The balance shown on the bank statement on the same date was $13,997. Notes The firm’s records indicate that a $1,600 deposit dated August 30 and a $601 deposit dated August 31 do not appear on the bank statement. A service charge of $28 and a debit memorandum of $230 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Andy Stein, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 120 Check 713, $ 130 Check 716, $ 250 Check 736, $ 577 Check 739, $ 78 Check 741, $ 120 A credit memorandum shows that the bank collected a $2,095 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Prepare a bank reconciliation statement for the firm as of August 31. 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
Section: Chapter Questions
Problem 1Q
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Problem 9.4A (Static) Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. LO 9-5, 9-6
On August 31, 20X1, the balance in the checkbook and the Cash account of the Sonoma Creek Bed and Breakfast was $13,031. The balance shown on the bank statement on the same date was $13,997.
- The firm’s records indicate that a $1,600 deposit dated August 30 and a $601 deposit dated August 31 do not appear on the bank statement.
- A service charge of $28 and a debit memorandum of $230 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Andy Stein, a credit customer.)
- The following checks were issued but have not yet been paid by the bank:
Check 712, | $ | 120 | |
Check 713, | $ | 130 | |
Check 716, | $ | 250 | |
Check 736, | $ | 577 | |
Check 739, | $ | 78 | |
Check 741, | $ | 120 | |
- A credit memorandum shows that the bank collected a $2,095 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records.
Required:
- Prepare a bank reconciliation statement for the firm as of August 31.
- 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
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