Question No. 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 31^st).

1. Of three cheques written in July (no. 15 for $35.00, no. 16 for $49.32, and no. 17 for $231.09), two cheques (no. 15 and no. 17) are outstanding.

2. A customer visited the company bank and deposited $300 to settle a bill from last month.

3. The bank charged account management fees of $8.50 and overdraft fees of $20.

4. A customer wired $400 for work completed last week. The electricity bill of $235.70 and gas bill of $201.78 were automatically withdrawn. The company policy is to record e-transfers when they show up on the bank statement.

5. On the evening of July 31^st, a company employee deposited an envelope containing a $375 cheque in the bank mail slot. The transaction was not included in the July bank statement