Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Owens book and bank balances matched at the end of August. However, his September 30th book balance is $3,780.73 while his September 30th bank balance

Owens book and bank balances matched at the end of August. However, his September 30th book balance is $3,780.73 while his September 30th bank balance is $3,281.04. Assuming Owen does his bookkeeping promptly unless otherwise stated, complete his bank reconciliation (including necessary journal entries) using the following information: a) In September, Owen wrote four cheques for $120, $432.50, $400, and $56.20. He sees the $120 and $400 cheques on his bank statement. b) A customer visited the company bank and deposited $100 to settle a bill from last month. Owen has not journalized this transaction. c) An August 29th cheque of $42.78 bounced on September 2nd. The bank charged an NSF cheque fee of $10. Owen has not journalized this transaction. d) A customer wired $360 for work completed last week. The internet bill of $85.15 and hydro bill of $101.08 were automatically withdrawn. Owen has not journalized these transactions. e) On the evening of September 30th, Owen deposited an envelope containing a $210 cheque in the bank mail slot. He can not find the deposit on the bank statement.

Why the outstanding cheques are added in the bank balances?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Sustainability Of Public Sector EntitiesThe Relevance Of Accounting Frameworks

Authors: Josette Caruana, Isabel Brusca, Eugenio Caperchione, Sandra Cohen, Francesca Manes Rossi

1st Edition

3030060365, 9783030060367

More Books

Students also viewed these Accounting questions