Question
The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation. DateInformation1Aug 31Bank statement balance $3,4902Aug 31Bank statement reflects bank
The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation.
DateInformation1Aug 31Bank statement balance $3,4902Aug 31Bank statement reflects bank fees for the month $353Aug 28NSF cheque $100 with fee of $10.4Aug 27Bank statement reflects paper statement fee $805Aug 31Bank statement reflects interest earned on balance $86Aug 31$1,000 note receivable collected by bank and deposited into XYZ's account. Related bank fee is $40.7Aug 131 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.8Aug 31Deposits in transit $1,4509Aug 31The GL reflects cash sales of $145. The bank statement reflects deposits related to these sales of $154. XYZ incorrectly recorded $145.10Aug 31General ledger cash account reflects $967
Which of the following journal entries is required after the bank reconciliation has been prepared?
Dr. General & Admin $80. Cr. Accounts Payable $80. (to reflect paper statement fee).
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).
There are no journal entries to record.
None of the others alternatives are correct
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