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 $28,860. The July 31, 2019, balance in the Cash account in the general ledger was $13,202.

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:

An electronic funds transfer for $15,400 from Foncier Ricard, a customer located in France, was received by the bank on July 31.

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

The accounting records indicate that Check 1425 was issued for $66 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $96.

A deposit of $800 made after banking hours on July 31 did not appear on the July 31 bank statement.

The following checks were outstanding: Check 1429 for $1,259, and Check 1430 for $151.

An automatic debit of $272 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:

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

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

Analyze: What effect on total expenses occurred as a result of the general journal entries recorded?

Bank Rec

General Journal

Analyze

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

WESTERN IMPORTS
Bank Reconciliation Statement
July 31, 2019
Balance on bank statement
Additions:
		0
		$0
Deductions:
Total deductions		0
Adjusted bank balance		$0
Balance in books
Additions:
		$0
Deductions:
		0
Adjusted bank balance		$0

General Journal

Analyze

Record general journal entries for the items on the bank reconiliation that must be journalized. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

Record the EFT received on account.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

Record the entry to correct for check 1422.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

Record the entry to correct for check 1425.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

Record the deposit in transit.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

Record the outstanding checks.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

Record the online payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
July 31, 2019

What effect on total expenses occurred as a result of the general journal entries recorded?

Total expenses will

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