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 308,339.62Explanation / 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.
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