On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The balance shown on the bank statement was $28,760. The July 31, 2019, balance in the Cash account in the general ledger was $14,242. 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 $14,400 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 $1,280. c. The accounting records indicate that Check 1425 was issued for $60 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $90. d. A deposit of $900 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 $1,249 and Check 1430 for $141. f. An automatic debit of $262 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records. Required: 1. Prepare a bank reconciliation for the firm as of July 31. 2. Record general journal entries for the items on the bank reconciliation that must be journalized. Analyze: What effect on total expenses occurred as a result of the general journal entries recorded? Prepare a bank reconciliation for the firm as of July 31. WESTERN IMPORTS Bank Reconciliation Statement $ 2,876,000 July 31, 2019 Balance on bank statement Additions: Deposit of July 31 in transit Check 1422 $90,000 8,000 98,000 $ 2,974,000 Deductions: Check 1429 124,900 14,100 Check 1430 Total deductions 139,000 $ 2,835,000 Adjusted bank balance Balance in books Balance in books Additions: EFT received on account from Foncier Ricard $ 1,440 $ 1,440 Deductions: Check 1425 3,000 Online payment on July 31 to CentralComm 26,200 29,200 $(27,760) Adjusted book balance Journal entry worksheet Record the entry to correct for check 1425. Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2019 Record entry Clear entry View general journal Journal entry worksheet Record the deposit in transit. Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2019 Record entry Clear entry View general journal Journal entry worksheet Record the entry to correct for check 1422. Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2019 Record entry Clear entry View general journal Journal entry worksheet
