The September 30 bank statement for Cadieux Company and the September ledger account for cash are summarized here: BANK STATEMENT ChecksDepositsOtherBalanceBalance, September 1           $1,800 September 7       NSF check$90  1,710 September 11    $2,700      4,410 September 12#101$700         3,710 September 17#102 1,500         2,210 September 26#103 2,200         10 September 29       EFT deposit 100  110 September 30       Service charge 10  100   Cash (A)Sep 1Balance1,800   Sep 10 2,700700Sep 10#101Sep 30 2,0001,500Sep 15#102   2,200Sep 22#103   40Sep 28#104Sep 30Balance2,060    No outstanding checks and no deposits in transit were noted in August. However, there are deposits in transit and checks outstanding at the end of September. The NSF check and EFT involved transactions with Cadieux Company’s customers.  How would i fill out the following journal entries.     -Record the electronic funds transfer of $100 made by a customer on their account.-Record the service charges of $10 deducted by the bank-Record the return of the customer check of $90 due to insufficient funds-Earlier this month, check #104 was recorded as a $40 cash payment. The check is still outstanding at the end of the month-On September 30, a deposit of $2,000 was recorded, but the deposit was still in transit at the end of the month

Question
Asked Apr 23, 2019
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The September 30 bank statement for Cadieux Company and the September ledger account for cash are summarized here:

 

BANK STATEMENT
  Checks Deposits Other Balance
Balance, September 1                       $ 1,800  
September 7               NSF check $ 90     1,710  
September 11         $ 2,700             4,410  
September 12 #101 $ 700                   3,710  
September 17 #102   1,500                   2,210  
September 26 #103   2,200                   10  
September 29               EFT deposit   100     110  
September 30               Service charge   10     100  
 

 

Cash (A)
Sep 1 Balance 1,800      
Sep 10   2,700 700 Sep 10 #101
Sep 30   2,000 1,500 Sep 15 #102
      2,200 Sep 22 #103
      40 Sep 28 #104
Sep 30 Balance 2,060      

 

No outstanding checks and no deposits in transit were noted in August. However, there are deposits in transit and checks outstanding at the end of September. The NSF check and EFT involved transactions with Cadieux Company’s customers.

 

 

How would i fill out the following journal entries. 

    -Record the electronic funds transfer of $100 made by a customer on their account.

-Record the service charges of $10 deducted by the bank

-Record the return of the customer check of $90 due to insufficient funds

-Earlier this month, check #104 was recorded as a $40 cash payment. The check is still outstanding at the end of the month

-On September 30, a deposit of $2,000 was recorded, but the deposit was still in transit at the end of the month

 

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Expert Answer

Step 1

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

  • Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
  • Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
Step 2

EFT (Electronic Funds Transfer): The online cash paid or received is referred to as EFT. Since the funds are transferred through banking network system, the companies do not include them in the Cash account. Electronic funds transfer (EFT) being collected by bank, is credited to bank account. But the company is not aware of the credit to the bank account. So, while preparing bank reconciliation statement, company should add the amount to the cash balance per books.

Entry for payment received from a customer through EFT:

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Step 3

Service charge: Banks deduct the service charge for the services rendered like lock box rental, or printed checks. But the company is not aware of such d...

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Bank Reconciliation

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