Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The bank statement for Fashion Fly had an ending cash balance of $1,500 on December 31, 2018. On this date the cash balance in their
The bank statement for Fashion Fly had an ending cash balance of $1,500 on December 31, 2018. On this date the cash balance in their general ledger was $2,000. After comparing the bank statement with the company records, the following information was determined.
- The bank returned an NSF check in the amount of $320 that Fashion Fly deposited on December 20. The NSF service fee was $5.
- A direct deposit was received from a customer on December 30 in payment of their accounts totaling $3,850. This has not yet been recorded by the company.
- On December 30 the bank deposited $10 for interest earned.
- The bank withdrew $15 for bank service charges.
- Deposits in transit on December 31 totaled $4,020.
- Reconcile the ledger and bank statement.
| |||||
| |||||
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Prepare the required journal entries
Date | Account Title and Explanation | Debit | Credit |
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