Probiem 9.4A (Static) Preparing a pank reconciliation statement ana journaiizıng entries to aajust tne 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 a. 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. b. 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.) c. The following checks were issued but have not yet been paid by the bank: Check 712, Check 713, Check 716, Check 736, $120 $130 $250 $577 $ 78 Check 739, ck 741, $120 d. 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: 1. Prepare a bank reconciliation statement for the firm as of August 31. 2. 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?
Probiem 9.4A (Static) Preparing a pank reconciliation statement ana journaiizıng entries to aajust tne 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 a. 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. b. 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.) c. The following checks were issued but have not yet been paid by the bank: Check 712, Check 713, Check 716, Check 736, $120 $130 $250 $577 $ 78 Check 739, ck 741, $120 d. 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: 1. Prepare a bank reconciliation statement for the firm as of August 31. 2. 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?
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 5E
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Transcribed Image Text:Probiem 9.4A (Static) Preparing a pank reconciliation statement ana journaiizing entries to aajust 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
a. 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.
b. 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.)
c. The following checks were issued but have not yet been paid by the bank:
$120
$130
$250
$577
$ 78
$120
Check 712,
Check 713,
Check 716,
Check 736,
Check 739,
Check 741,
d. 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:
1. Prepare a bank reconciliation statement for the firm as of August 31.
2. 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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