X i Data Table Cash Account No. 101 Date Item Jrnl. Ref. Debit Credit Balance August 1 Balance 31 CR 6 9,977 7,750 17,727 7,794 31 CP 11 9,933 Cash Receipts (CR) Cash Payments (CP) Date Cash Debit Check No. Cash Credit August 2$ 2,964 3113 $ 1,546 8 593 3114 1,457 10 1,601 3115 1,830 16 843 3116 24 22 404 3117 875 29 3118 125 970 2,602 30 3119 498 9,977 Total 3120 1,026 3121 255 2,297 3122 $ 9,933 Total Print Done $ 7,750 Bank Statement for August 2018 Beginning balance Deposits and other additions: August 1 750 EFT $ 4 2,964 9 593 12 1,601 17 843 22 404 1,200 BC 23 8,355 Checks and other deductions: August 7 $ 1,546 13 1,380 14 415 US 15 1,457 18 24 21 467 EFT 26 875 25 SC 30 125 30 (6,314) $ 9,791 Ending balance Explanation: BC-bank collection of note receivable from customer, EFT - electronic funds transfer, US - unauthorized signature, SC-service charge P. More Info Additional data for the bank reconciliation include the following: a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment. b. The unauthorized signature check was received from a customer and returned by the bank unpaid. c. The correct amount of check number 3115, a payment on account, is $1,380. (Dunlap Automotive's accountant mistakenly recorded the check as $1,830.) Print Done 1 Requirements 1. Prepare Dunlap Automotive's bank reconciliation at August 31, 2018. 2. Prepare the journal entries required at August 31, 2018. 3. Describe how a bank account and the bank reconciliation help the general manager control Dunlap Automotive's cash. Print Done The cash data of Dunlap Automotive for August 2018 follow: (Click the icon to view the checkbook) Dunlap Automotive received the following tank statement on August 31, 2018: (Click the icon to view the bank statement.) 1 (Click the icon to view the additional data for the bank reconciliation) Read the requirements Requirement 1. Prepare Dunlap Automotive bank reconciliation at August 31, 2018 Prepare the Bank side of the bank reconcilation, then prepare the Book side of the bank reconciliation (Include the balances at August 31 in each of the addition subtotal calculations. If a box is not used in the table, leave the box empty, do not select a label or enter a zero.) Dunlap Automotive Bank Reconciliation August 31, 2018 Bank: Add: Subtotal Less: Check No. Books: Add: Subtotal Less Requirement 2. Prepare the journal entries required at August 31, 2018. (Record debits first, then credits. Exclude explanations from all journal entries.) Record the EFT deposit. Journal Entry Date Accounts Debit Credit Aug 31 Record the bank collection of note receivable. Journal Entry Accounts Date Debit Credit Aug 31 Record the correction for check #3115. Journal Entry Accounts Date Debit Credit Aug 31 Record the EFT debit. Journal Entry Date Accounts Debit Credit Aug 31 Record the unauthorized signature (US) check returned by the bank. Journal Entry Date Accounts Debit Credit Aug 31 Finally, record the bank service charge. Journal Entry Date Accounts Debit Credit Aug 31 Requirement 3. Describe how a bank account and the bank reconciliation help the general manager control Dunlap Automotive's cash. A bank account helps control cash by: (Select all statements that apply. If a box is not used in the table, leave the box empty; do not select a label.) A bank reconciliation helps control cash by: (Select all statements that apply. If a box is not used in the table, leave the box empty; do not select a label.)
