Answered step by step
Verified Expert Solution
Question
1 Approved Answer
an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the
an NSF cheque, originally received as payment for an account receivable of $3,000, is included. A memo for bank charges of $75 for the NSF cheque is also included. Another memo advises the company that $2,000 has been deposited to the bank account, ($1,950 less a bank charge of $50). This represents the net proceeds of a collection the bank had made on behalf of the company on a $2,000 note receivable. c. Cheques written during the month but not included with the bank statement are no. 1200, $1,500; no. 1223, $2,000; no. 1260, $950; no. 1294, $3,500. d. Cheque no. 1222 is returned with the bank statement. The cheque was made for $6,500, the correct amount owing for office expense. The cheque was recorded in the company records in the amount of $5,600. e. Cheques outstanding at the end of July included cheques no. 1114 for $1,600 and no. 1116 for $1,250. Cheque no. 1116 cleared the August bank statement; cheque no. 1114 did not. Required: 1. Prepare a bank reconciliation at August 31, 2019. 2. Prepare the necessary adjusting journal entries required to make the cash account in the general ledger agree with the adjusted cash balance on the August bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started