On August 31, 2019, the balance in the checkbook and theCash account of the Dry Creek Bed and Breakfastwas $12,253. The balance shown on the bank statement on the samedate was $13,182.
Notes
The firm’s records indicate that a $1,420 deposit dated August30 and a $698 deposit dated August 31 do not appear on the bankstatement.
A service charge of $7 and a debit memorandum of $305 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, | $ | 107 | |
| Check 713, | $ | 122 | |
| Check 716, | $ | 235 | |
| Check 736, | $ | 574 | |
| Check 739, | $ | 75 | |
| Check 741, | $ | 117 | |
|
A credit memorandum shows that the bank collected a $2,069 notereceivable and interest of $60 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?
