On August 31, 2019, the balance in the checkbook and theCash account of the Dry Creek Bed and Breakfastwas $12,327. The balance shown on the bank statement on the samedate was $13,222.

Notes

The firm’s records indicate that a $1,500 deposit dated August30 and a $706 deposit dated August 31 do not appear on the bankstatement.

A service charge of $9 and a debit memorandum of $345 coveringan NSF check have not yet been entered in the firm’s records. (Thecheck was issued by Art Corts, a credit customer.)

The following checks were issued but have not yet been paid bythe bank:

Check 712,	$	115
Check 713,	$	130
Check 716,	$	243
Check 736,	$	582
Check 739,	$	83
Check 741,	$	125

  

A credit memorandum shows that the bank collected a $2,109 notereceivable and interest of $68 for the firm. These amounts have notyet been entered in the firm’s records.

Required:

Prepare a bank reconciliation statement for the firm as ofAugust 31.

Record general journal entries for items on the bankreconciliation statement that must be journalized.

Analyze:
What effect did the journal entries recorded as a result of thebank reconciliation have on the fundamental accountingequation?

Complete this question by entering your answers in thetabs below.

Bank Rec

General Journal

Analyze

Prepare a bank reconciliation statement for the firm as ofAugust 31.

	DRY CREEK BED AND BREAKFAST Bank Reconciliation Statement August 31, 2019 Balance on bank statement Additions: Deductions: Total deductions Adjusted bank balance Balance in books Additions: Deductions: Adjusted book balance

Bank Rec

Journal entry worksheet

Record the deposit in transit.

Note: Enter debits before credits.

Record the bank service fee.
	Date General Journal Debit Credit Aug 31, 2019

Record the bank service fee.

Note: Enter debits before credits.

	Date General Journal Debit Credit Aug 31, 2019

Record the returned check.

Note: Enter debits before credits.

Date General Journal Debit Credit Aug 31, 2019 Record the outstanding checks. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31, 2019 Record the note collected by the bank plus interest. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31, 2019 What effect did the journal entries recorded as a result of thebank reconciliation have on the fundamental accountingequation? Neteffect by G