On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,316. The balance shown on the bank statement on the same date was $13,217.

Notes

The firms records indicate that a $1,490 deposit dated August 30 and a $705 deposit dated August 31 do not appear on the bank statement.

A service charge of $7 and a debit memorandum of $340 covering an NSF check have not yet been entered in the firms 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,	$	114
Check 713,	$	129
Check 716,	$	242
Check 736,	$	581
Check 739,	$	82
Check 741,	$	124

A credit memorandum shows that the bank collected a $2,104 note receivable and interest of $67 for the firm. These amounts have not yet been entered in the firms records.

Required:

Prepare a bank reconciliation statement 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?

Week 3 Assignment 2 Bank Reconcillation Statement 2019 Balance on bank statement Additions: points eBook Deductions: References Total deductions Adjusted bank balance Balance in books Additions: Deductions Ad usted book balance Doneral Journa Prev