On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. NotesThe firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement.A service charge of $8 and a debit memorandum of $280 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,$102 Check 713,$117 Check 716,$230 Check 736,$569 Check 739,$70 Check 741,$112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required:Record general journal entries for items on the bank reconciliation statement that must be journalized. Date the entries August 31, 20X1.Record the deposit in transit.Record the outstanding checks.Record the bank service fee.Record the note collected by the bank plus interest.Record the returned check. Analyze:What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equationAnalyzeWhat effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation? Net effect by Journal Entries : DateGeneral JournalDebitCreditAug 31, 20X1

The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Answered: On August 31, 20X1, the balance in the…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

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On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157.

Notes

The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement.
A service charge of $8 and a debit memorandum of $280 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,	$	102
Check 713,	$	117
Check 716,	$	230
Check 736,	$	569
Check 739,	$	70
Check 741,	$	112

A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records.

Required:

Record general journal entries for items on the bank reconciliation statement that must be journalized. Date the entries August 31, 20X1.

Record the deposit in transit.
Record the outstanding checks.
Record the bank service fee.
Record the note collected by the bank plus interest.
Record the returned check.

Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation

Analyze

What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

Net effect

Journal Entries :

Date	General Journal	Debit	Credit
Aug 31, 20X1

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