Using the following information, prepare the journal entries to reconcile the bank statement. • Bank balance: $4,678 • Book balance: $3,046 • Deposits in transit: $320 • Outstanding checks: $108 and $334 • Bank service charges: $25 Notes receivable: $1,500; Interest income: $35
Using the following information, prepare the journal entries to reconcile the bank statement. • Bank balance: $4,678 • Book balance: $3,046 • Deposits in transit: $320 • Outstanding checks: $108 and $334 • Bank service charges: $25 Notes receivable: $1,500; Interest income: $35
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Using the following information, prepare the journal entries to reconcile the bank statement.
Bank balance: $4,678
• Book balance: $3,046
• Deposits in transit: $320
• Outstanding checks: $108 and $334
• Bank service charges: $25
• Notes receivable: $1,500; Interest income: $35
If an amount box does not require an entry, leave it blank.
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Step 1
Journal entry is the process of documenting commercial transactions for the first time in the books of accounts. Journal entries form the basis for other accounting tasks such as ledger account preparation, trial balances, financial statements, and so on.
The initial recording of all monetary business transactions in a systematic way is known as journal entries. They are listed in chronological sequence according to when the incident occurred. Adjusting entries, closing entries, and normal entries are all examples of diary entries.
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