Question 2

For each bank reconciliation item, describe the appropriate action an accountant should take. If a

journal entry is needed, please make one (assume a date of July 31st).

Of three cheques written in July (no. 15 for $135.00, no. 16 for $149.32, and no. 17 for $331.09), two

cheques (no. 15 and no. 17) are outstanding.

A customer visited the company bank and deposited $550 to settle a bill from last month.

The bank charged account management fees of $12.50 and overdraft fees of $35.

A customer wired $600 for work completed last week. The electricity bill of $335.70 and gas bill of

$101.78 were automatically withdrawn. The company policy is to record e-transfers when they show up

on the bank statement.

On the evening of July 31st, a company employee deposited an envelope containing a $575 cheque in

the bank mail slot. The transaction was not included in the July bank statement.