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Cant figure out the last part. Larkspur, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1
Cant figure out the last part.
Larkspur, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: Interest earned $18,525 71,125 68,603 Bank debit memorandum: Safety deposit box fee Service charge Balance, August 31 $ 100 125 20,942 120 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,825; receipts $74,125; disbursements $73,495; and balance, August 31, $19,455. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,875 and outstanding checks of $4,575. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. (a) Your answer is correct. Determine deposits in transit. Deposits in transit 7875 LARKSPUR, INC. Bank Reconciliation August 31, 2017 Cash balance per bank statement 20942 Add | Deposits in transit 7875 28817 Less 1. Outstanding checks andino checks 9827 Adjusted cash balance per bank 18990 Cash balance per books | 19455 Add . Interest earned 120 19575 Less Safety deposit box rent Service charge 125 Error in recording check 585 Adjusted cash balance per books 18990 Journalize the adjusting entries to be made by Larkspur, Inc. at August 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Aug. 31 (To record Interest earned) Aug. 31 (To correct error in recording check) Aug. 31 (To record service charge and safety deposit box fee)Step by Step Solution
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