Western Flyers received its bank statement for the month of July with an ending

Question

Western Flyers received its bank statement for the month of July with an ending balance of $11,065.00. Western Flyers determined that check #598 for $125.00 and check #601 for $375.00 were both outstanding. Also, a $7,500.00 deposit for July 30th was in transit as of the end of the month. Big Bucks Bank also collected a $5,000.00 notes receivable on July 1st that was issued January 1st at 12% annual interest. No interest revenue has been accrued on this note and Big Bucks Bank charged a $15.00 fee for the collection service.The company?s morning reports resulted in a bank service charge of $20.00 and a customer check for $75.00 was returned with the statement marked ?NSF?. The ending balance of the Western Flyers cash account is $12,875.00.
Complete a bank/account reconciliation and write any necessary journal entries for the reconciliation.

Explanation / Answer

Bal. per bank statement $11,065.00.
less outstanding cheques (500)
add deposit in transit $7,500.00
less note receivable (5,300)
add service charge 15.00
add NSF cheque 75.00
add service charge 20
Bal. per company's books $12,875

Journal entries:
Dr Cash 5,300
Cr Note receivable 5,000
Cr Interest revenue 300

Dr Accounts receivable 75
Cr Cash 75

Dr Bank service charges 35
Cr Cash 35

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.