Entries for Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Ross Co. for March 20Y9:

Cash balance according to the companys records at March 31, $29,945.

Cash balance according to the bank statement at March 31, $29,200.

Checks outstanding, $11,600.

Deposit in transit, not recorded by bank, $12,400.

A check for $240 in payment of an account was erroneously recorded by Ross Co. as $420.

Bank debit memo for service charges, $125.

Record the effects on the accounts and financial statements of the company based upon the information above. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

Error recording the check amount

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
	SelectAccounts PayableCashNo effectItem 1	+	SelectAccounts ReceivableMerchandise InventoryNo effectItem 2	=	SelectAccounts PayableAccounts ReceivableNo effectItem 3	+		SelectCapital StockRetained EarningsNo effectItem 4
March 31.
Statement of Cash Flows								Income Statement
SelectFinancingInvestingOperatingNo effectItem 9								SelectCost of merchandise soldNet incomeSalesNo effectItem 11
								SelectCost of merchandise soldNet incomeSalesNo effectItem 13
								SelectCost of merchandise soldNet incomeSalesNo effectItem 15

Bank service charge

Statement of Cash Flows	Balance Sheet								Income Statement
	Assets			=	Liabilities	+	Stockholders' Equity
	SelectAccounts PayableCashNo effectItem 17	+	SelectAccounts ReceivableMerchandise InventoryNo effectItem 18	=	SelectAccounts ReceivableCashNo effectItem 19	+		SelectCapital StockRetained EarningsNo effectItem 20
March 31.									March 31.
Statement of Cash Flows								Income Statement
SelectFinancingInvestingOperatingNo effectItem 25								SelectCost of merchandise soldMiscellaneous expenseSales returns and allowanceNo effectItem 27
								SelectDelivery expenseRetained earningsSales returns and allowanceNo effectItem 29
								SelectCost of merchandise soldSales discountsSales returns and allowanceNo effectItem 31