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?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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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.

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?

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