The following information is for Oriole Ltd. in July: Prepare any journal entrie
ID: 2537985 • Letter: T
Question
The following information is for Oriole Ltd. in July:
Prepare any journal entries required from the reconciliation.
Date
Account Titles and Explanation
Debit
Credit
(To correct error in cheque 373)
(To record bank service charge)
1. Cash balance per bank, July 31, $10,630 2. Cash balance per books, July 31, $8,786 3. Bank service charge, $40 4. Deposits in transit, $1,992 5. Electronic receipts from customers in payment of their accounts, $1,024, not previously recorded by the company 6. Outstanding cheques, $2,402 7.Cheque #373 was correctly written in the amount of $490 but was incorrectly recorded by the company’s bookkeeper as $940. The cheque was written for the purchase of office supplies.
Prepare any journal entries required from the reconciliation.
Date
Account Titles and Explanation
Debit
Credit
July 31
(To correct error in cheque 373)
31
(To record EFT deposits)
31
(To record bank service charge)
ORIOLE LTD. Bank Reconciliation July 31 10,630 1,992 12,622 Cash balance per bank statement AddDeposits in transit Less : Outstanding Cheques 2,402 Cash balance per books 8,786 Add EFT deposits 1,024 | Less $ . Bank service charges 0 Reconciled cash balance per booksExplanation / Answer
REQ1: BANK RECONCILIATION STATEMENT Cash balance as per bank Statement 10630 Add: Deposits in transit 1992 12622 Less: Outstanding checks 2402 Adjusted balance as per bank statement 10220 Cash balance as per books 8786 Add: EFT deposits 1024 Error in writing check 450 10260 Less: Service charges 40 Adjusted balance as per books 10220 Req 2: Journal entries: Cash Account Dr. 450 Office supplies 450 (for correct the eror ) Cash Account Dr. 1024 Accounts receivable 1024 (for EFT transfer received) Service charges expense Account Dr. 40 Cash Account 40 (for service charges incurred)
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