Question
lux Transportation Services has just received its bank statement for the month and has compared it to the general ledger cash account. GENERAL LEDGER Account:
lux Transportation Services has just received its bank statement for the month and has compared it to the general ledger cash account.
GENERAL LEDGER
Account: Cash | Gl No: 101 | ||||
Date | Description | Debit | Credit | Balance | |
Oct 1 | Opening Balance | 13,100 | DR | ||
Oct 2 | Check #401 | 750 | 12,350 | DR | |
Oct 5 | Check #220 | 900 | 13,250 | DR | |
Oct 8 | Check #403 | 750 | 12,500 | DR | |
Oct 16 | Check #404 | 200 | 12,300 | DR | |
Bank Statement | ||||
Date | Description | Withdrawal | Deposit | Balance |
Oct 1 Oct 2 Oct 6 Oct 6 Oct 10 Oct 16 Oct 30 Oct 31 | Opening Balance Check #401 Check #220 EFT Rent Payment Check #403 Check #88 Interest Service Charge |
750
750 750
110 |
900
445 50 | 13,100 12,350 13,250 12,500 11,750 12,195 12,245 12,135 |
Prepare the bank reconciliation for Lux Transportation as at October 31, 2018.
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analysis:
After some investigation, it is discovered that Check #88 is not from a customer and should not have been deposited into the companys bank account by the bank. How does this discovery change the bank reconciliation and any necessary journal entries?
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