The bank statement for Corsens Fashion Inc. had an ending cash balance of $3,000 on July 31,

Question:

The bank statement for Corsen’s Fashion Inc. had an ending cash balance of $3,000 on July 31, 2019. On this date, the company’s cash balance in the general ledger was $4,000. After comparing the bank statement with the company records, the following information was determined: 

  • The bank returned an NSF cheque in the amount of $640 that Corsen’s Fashion Inc. deposited on July 20. 
  • Direct deposit received from a customer on July 30 in payment of their accounts totalling $3,850. This has not yet been recorded by the company’s bookkeeper. 
  • On July 30, the bank deposited $20 for interest earned on the account. 
  • The bank withdrew $40 for bank service charges. 
  • Deposits in transit on July 31 totalled $4,190. 


Required 

Reconcile the ledger and bank statement, and create the required journal entries.

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Related Book For  book-img-for-question

College Accounting A Practical Approach

ISBN: 978-0134166698

13th Canadian edition

Authors: Jeffrey Slater, Debra Good

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