Question

i 33 Name: Red Question 4 From the following information for the Dolce & Gabana Company, prepare a) A Bank Reconciliation statement on November 30, 2019 b) The necessary general journal entries to cessary general journal entries to correct the accounts of the company. Information for Dolce & Gabana: - The cash ledger account had a balance of $7,730 on November 30, 2019 2) The bank state The bank statement had a balance of $8,460 on November 30, 2019. A check from customer CC New York for $725 was returned marked NSF. 4) A deposit of $1,750 made on 11/30/2019 was not on the bank statement. 5) Bank Service Charges was $75 for November. 6) The bank collected a customer's note receivable for $1,400 plus interest of $100. 7) Total outstanding checks on November 30 were $1,150 8) A check to purchase equipment was incorrectly recorded by the company for $920. The check was for $290 and the bank deducted the correct amount.

Answer 1

(a) A Bank Reconciliation Statement on November 30, 2019: BANK RECONCILIATION STATEMENT November 30, 2019 BANK Amount (S) BOOK Balance Statement balance 8,460 Book balance Amount (S) 7,730 ADD: Deposit in Transit 1,750 1,750 1,500 ADD: Proceeds of note receivable Book Recording Error ($920-$290) 630 2.130 10,210 9,860 LESS: Outstanding Checks (1,150 LESS: (1,150 NSF Checks Service charge (725)|| (800) Adjusted Bank Balance 9,060 Adjusted Book Balance 9,060 Therefore, adjusted balance is 9,060

2. Journal Entries are as follows:

Debit Credit Date Account Title and Explanation 1 No Journal Entry Required 2 No Journal Entry Required 3 Accounts receivable Cash To record the NSF check) 4 5 $75 No Journal Entry Required Service charge Cash To record the bank service charge) Cash Interest Notes receivable To record the notes collected plus interest) 6 $1,400 $100 $1,500 7 No Journal Entry Required 8 $630 Cash Equipment [$920 - $290] To correct the record error)