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The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation. Date Information Aug Bank statement balance $3,490 31 2
The following information relates to the month of August for XYZ Inc. Prepare the bank reconciliation. Date Information Aug Bank statement balance $3,490 31 2 Aug Bank statement reflects bank fees for the month $35 31 3 Aug NSF cheque $100 with fee of $10. 28 4 Aug Bank statement reflects paper statement fee $80 27 15 Aug Bank statement reflects interest earned on balance $8 31 6 Aug $1,000 note receivable collected by bank and deposited into XYZ's account. Related bank fee is $40. 31 Aug 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. 8 Aug Deposits in transit $1,450 31 9 Aug The GL reflects cash sales of $145. The bank statement reflects deposits related to these sales of $154. XYZ incorrectly recorded $145. 31 10 Aug General ledger cash account reflects $967 31 Which of the following journal entries is required after the bank reconciliation has been prepared? Dr. Interest revenue $8. Cr. Cash $8 (to reflect interest earned on bank balance). O None of the others alternatives are correct O 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) There are no journal entries to record
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