Answered step by step
Verified Expert Solution
Question
1 Approved Answer
options are Dr. bank fees $35. Cr. Cash $35 (to reflect bank fees for the month) Dr. Interest revenue $8. Cr. Cash $8 (to reflect
options are
The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation NM 1 2 3 4 5 6 Date Aug 31 Aug 31 Aug 28 Aug-27 Aug 31 Aug 31 7 Aug 1-31 Information Bank statement balance $3,490 Bank statement reflects bank fees for the month $35 NSF cheque $100 with fee of $10. Bank statement reflects paper statement fee $80 Bank statement reflects interest earned on balance $8 $1,000 note receivable collected by bank and deposited into XY2's account. Related bank fee is $40. XYZ wrote cheques with total value over $60,000. As of Aug 31 $3,021 of the cheques written have not cleared the bank. Also, $200 cheques written back in June have still not cleared the bank. Deposits in transit $1,450 The GL reflects cash sales of $145. The bank statement reflects deposits related to these sales of $154. XYZ incorrectly recorded $145. General ledger cash account reflects $967 8 9 Aug 31 Aug 31 10 Aug 31 Which of the following journal entries is required after the bank reconciliation has been prepared Dr. bank fees $35. Cr. Cash $35 (to reflect bank fees for the month)
Dr. Interest revenue $8. Cr. Cash $8 (to reflect interest earned on bank balance).
None of the other alternatives are correct
Cip
There are no journal entries to record.
Dr. General & Admin $80. Cr. Accounts Payable $80. (to reflect paper statement fee).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started