Using the info below please answer the following: Give in general journal format

Question

Using the info below please answer the following: Give in general journal format the entry or entries necessary to correct Grey’s accounting records as of June 30. (Explanations may be omitted; one compound journal entry is acceptable). 1. Complete the June 30 bank reconciliation for Grey Company using the following information and with the given format: 1. Outstanding checks: No 372 $268 No 382 410 No 391 620 2. Check no 385 (for Repairs Expense was written for $452 but erroneously recorded in Grey’s records as 352 (difference $100) 3. Deposit in transit $2,120 4. Note collected by bank as agent for Grey company (no interest) $1,250 5. Debit memoranda from bank for NSF check of R. Rutherford $ 876 6. Bank service charge $ 25 Grey Company Bank Reconciliation 30-Jun-14 Balance per bank statement, June 30, 2014 $8,394 Add: Deposit in transit $2,120 Deduct: Outstanding Checks -$1,298 Adjusted balance: $9,216 Balance per depositor’s records, June 30, 2014 $8,967 Add: Note collected by bank $1,250 Deduct: Check No. 385 error -$100 NSF Check -$876 Bank service charge -$25 Adjusted balance: $9,216

Explanation / Answer

Rectification entry required

Bank account Dr 1250

Note receivable Cr 1250

( To record entry for note collected by bank)

Repair Expenses Dr 100

Bank Cr 100

( To record rectification for the wrong entry )

Account Receivable Dr 876

Bank Cr 876

( To record NSF of the bank)

Bank charges Dr 25

Bank Cr 25

( To record bank service charges levied by the bank)

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