FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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