I need help with the final step. It says i have everything else correct but im at a loss for the final step On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,316. The balance shown on the bank statement on the same date was $13,217.   Notes The firm’s records indicate that a $1,490 deposit dated August 30 and a $705 deposit dated August 31 do not appear on the bank statement. A service charge of $7 and a debit memorandum of $340 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, $ 114   Check 713, $ 129   Check 716, $ 242   Check 736, $ 581   Check 739, $ 82   Check 741, $ 124        A credit memorandum shows that the bank collected a $2,104 note receivable and interest of $67 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: *this is where I need help*What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

Question

I need help with the final step. It says i have everything else correct but im at a loss for the final step

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,316. The balance shown on the bank statement on the same date was $13,217.

 

Notes

  1. The firm’s records indicate that a $1,490 deposit dated August 30 and a $705 deposit dated August 31 do not appear on the bank statement.
  2. A service charge of $7 and a debit memorandum of $340 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
  3. The following checks were issued but have not yet been paid by the bank:
     
 
Check 712, $ 114  
Check 713, $ 129  
Check 716, $ 242  
Check 736, $ 581  
Check 739, $ 82  
Check 741, $ 124  

 

  

  1. A credit memorandum shows that the bank collected a $2,104 note receivable and interest of $67 for the firm. These amounts have not yet been entered in the firm’s records.
     

Required:

  1. Prepare a bank reconciliation statement for the firm as of August 31.
  2. Record general journal entries for items on the bank reconciliation statement that must be journalized.


Analyze: *this is where I need help*
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

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