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1. The $86.77 amount located in the bank statement column should not be there. W

ID: 2741330 • Letter: 1

Question

1. The $86.77 amount located in the bank statement column should not be there. What accounts should be debited and credited so that the general ledger and bank statement still balance? Please be specific.

GENERAL LEDGER BALANCE

BANK STATEMENT BALANCE

1. The $86.77 amount located in the bank statement column should not be there. What accounts should be debited and credited so that the general ledger and bank statement still balance? Please be specific.

GENERAL LEDGER BALANCE

BANK STATEMENT BALANCE

Beginning Balance 361,636.28 Statement Balance 315,305.00      Add: Deposits 179,258.23 Transfer LOC      Add: Transfer from LOC      Add: Deposit in Transit      Add: Payroll Correction Add:Voided Check/refund 3,500.00      Add: Other 86.77 Total Funds Available 544,394.51 Subtotal 315,391.77    Subtract - Checks Written 175,815.03 Profit Sharing      Subtract - Outstanding 7,052.15      Subtract -Reg Payroll 54,891.48      Subtract -      Subtract - 401K 465.96      Other - Bank Charge 62.72 LOC Northwestern Mut. (Life Ins) 44.70 Payroll Fee AU tickets 4,775.00 Balance Ending 308,339.62 Actual Bank Balance 308,339.62

Explanation / Answer

The amount $86.77 is in the head of “other deposit”.

Journal

Date

Accounts titles and explanation

P.ref.

Debit

Credit

Cash

$86.77

Other deposit

$86.77

To record the missing entry that is reflected in the bank statement.

Since this is the source of fund, other deposit should be credited. On the same time cash account is debited because of incoming fund.

Date

Accounts titles and explanation

P.ref.

Debit

Credit

Cash

$86.77

Other deposit

$86.77

To record the missing entry that is reflected in the bank statement.