Question
After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company's checking account online. The activity
After returning from a three-day business trip, the accountant for Southeast Sales, Johanna Estrada, checked bank activity in the company's checking account online. The activity for the last three days follows.
Business Checking Account #123456-987 Date Type Description Additions Payments Balance 09/24/2019 Loan Payment Online Transfer to CM XXXX $ 4,500.00 $ 16,675.06 09/24/2019 DEPOSIT ID NUMBER 8888 $ 2,369.60 $ 21,175.06 09/23/2019 CHECK #1554 (view) $ 4,500.00 $ 18,805.46 09/23/2019 Bill Payment Online Payment $ 46.05 $ 23,305.46 09/22/2019 CHECK #1553 (view) $ 340.00 $ 23,351.51 09/22/2019 Check, CHECK #1551 (view) $ 1,850.00 $ 23,691.51 09/22/2019 ACH Credit Edwards UK AP PAYMENT $ 9,900.00 $ 25,541.51 09/22/2019 ATM WITHDRAWAL $ 340.00 $ 15,641.51
After matching these transactions to the company's Cash account in the general ledger, Johanna noted the following unrecorded transactions:
- The ATM withdrawal on 9/22/2019 was for personal use by the owner, Robert Savage.
- The ACH credit on 9/22/2019 was an electronic funds payment received on account from Edwards UK, a credit customer located in Great Britain.
- The bill payment made 9/23/2019 was to Waste Control Trash Services (utilities).
- The loan payment on 9/24/2019 was an automatic debit by Central Motors for the company's monthly payment on a loan for its automobiles. The loan does not bear interest.
Prepare the journal entries in a general journal to record the four transactions above.
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