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On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,246. The balance shown
On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,246. The balance shown on the bank statement on the same date was $13,177.
Notes
- The firm's records indicate that a $1,410 deposit dated August 30 and a $697 deposit dated August 31 do not appear on the bank statement.
- A service charge of $9 and a debit memorandum of $300 covering an NSF check have not yet been entered in the firm's records. (The check was issued by Art Corts, a credit customer.)
- The following checks were issued but have not yet been paid by the bank:
Check 712, $ 106 Check 713, $ 121 Check 716, $ 234 Check 736, $ 573 Check 739, $ 74 Check 741, $ 116
- A credit memorandum shows that the bank collected a $2,064 note receivable and interest of $59 for the firm. These amounts have not yet been entered in the firm's records.
- a bank reconciliation statement is needed for the firm as of August 31.
- Record general journal entries for items on the bank reconciliation statement that must be journalized.
Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
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