A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank $ 10,000 add: Deposits in Transit $ 1,800 deduct: Outstanding Cheques $ (2,200 Balance per Books $ 9,600 Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 $ 12,000 Deposits $ 7,300 Cheques $ 4,800 Third you look at the bank statement provided by your bank and you see the following: Balance July 31 $ 12,430 Deposits $ 6,000 Cheques $ 4,000 Note collected $ 1,000 Bank service charge $ 20 NSF cheque $ 150 Interest received $ 200 Autowithdrawals $ 500 Which of the following adjusting journal entries is required after the bank reconciliation has been prepared? Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month) Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw) Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance) Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque None of the other alternatives are correct
A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank $ 10,000 add: Deposits in Transit $ 1,800 deduct: Outstanding Cheques $ (2,200 Balance per Books $ 9,600 Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 $ 12,000 Deposits $ 7,300 Cheques $ 4,800 Third you look at the bank statement provided by your bank and you see the following: Balance July 31 $ 12,430 Deposits $ 6,000 Cheques $ 4,000 Note collected $ 1,000 Bank service charge $ 20 NSF cheque $ 150 Interest received $ 200 Autowithdrawals $ 500 Which of the following adjusting journal entries is required after the bank reconciliation has been prepared? Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month) Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw) Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance) Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque None of the other alternatives are correct
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7: Accounting For Cash
Section: Chapter Questions
Problem 2CE
Related questions
Question
A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows:
Balance per Bank | $ | 10,000 |
add: Deposits in Transit | $ | 1,800 |
deduct: Outstanding Cheques | $ | (2,200 |
Balance per Books | $ | 9,600 |
Second you close your update your Cash and bank account with all transactions recorded before AJE and you have:
Balance July 31 | $ | 12,000 |
Deposits | $ | 7,300 |
Cheques | $ | 4,800 |
Third you look at the bank statement provided by your bank and you see the following:
Balance July 31 | $ | 12,430 |
Deposits | $ | 6,000 |
Cheques | $ | 4,000 |
Note collected | $ | 1,000 |
Bank service charge | $ | 20 |
NSF cheque | $ | 150 |
Interest received | $ | 200 |
Autowithdrawals | $ | 500 |
Which of the following
-
Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month)
-
Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw)
-
Dr. Interest revenue $200 Cr. Cash $200 (to reflect interest earned on bank balance)
-
Dr Cash $150 Cr. Accounts Receivables $150 (to reflect the NSF cheque
- None of the other alternatives are correct
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub