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

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- Required information [The following information applies to the questions displayed below.] As of June 30, Year 1, the bank statement showed an ending balance of $19,500. The unadjusted Cash account balance was $15,200. The following information is available: 1. Deposit in transit: $2,400. 2. Credit memo in bank statement for interest earned in June: $30. 3. Outstanding check: $6,690. 4. Debit memo for service charge: $20. b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forwardhello, I need help pleasearrow_forwardneed answer pleasearrow_forward
- Hello tutor please help me with this Questionarrow_forwardLong Branch Company's Cash account shows an ending balance of $650. The bank statement shows a $12 service charge and an NSF check for $200. A $270 deposit is in transit, and outstanding checks total $450. What is Long Branch's adjusted cash balance? A. $438 B. $470 OC. $258 D. $862 OOOarrow_forwardDo not provide answer in image formatarrow_forward
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