On August $1,20$X$1,$ the accountant for Western Imports downloaded the company's July $31,20$X$1,$ bank statement from the bank's website. The balance shown on the bank statement was $$28,690.$ The July $31,201,$ balance in the Cash account in the general ledger was $$14,679.$

Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cash account in the general ledger:

a$.$ An electronic funds transfer for $$13,700$ from Foncier Ricard, a customer located in France, was received by the bank on July $31.$

b$.$ Check $1422$ was correctly written and recorded for $$1,200.$ The bank mistakenly paid the check for $$1,250.$

c$.$ The accounting records indicate that Check $1425$ was issued for $$69$ to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $$99.$

d$.$ A deposit of $$730$ made after banking hours on July $31$ did not appear on the July $31$ bank statement.

e$.$ The following checks were outstanding: Check $1429$ for $$1,242$ and Check $1430$ for $$134.$

f$.$ An automatic debit of $$255$ on July $31$ from CentralComm for telephone service appeared on the bank statement but had recorded in the company's accounting records.

Required:

Prepare a bank reconciliation for the firm as of July $31.$

Record general journal entries for the items on the bank reconciliation that must be journalized.

Analyze:

What was the effect on total expensestas a result of the general journal entries recorded?

WESTERN IMPORTS

Bank Reconciliation Statement July $31,20$X$1$

Balance on bank statement

Additions:

Check $1422$

Check $1425$

Check $1429$

Check $1430$

Deductions:

Deposit of July $31$ in transit

Total deductions

Adjusted bank balance

Balance in books

Additions:

Deductions:

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Record the EFT received on account.

Record the entry for correction of check $1422$

Record the entry for correction of check $1425$

Record the deposit in transit

Record putstanding checks

Record the online payment

WESTERN IMPORTS

Find the TOTAL EXPENSES WILL INCREASE OR DECREASE BY $\_\_\_$