Question

Jim White operates a roller skating center. He has just received the monthly bank statement at January 31 from Citizen National Bank, and the statement shows an ending balance of $730. Listed on the statement are an EFT rent collection of $320, a service charge of $8, two NSF checks totaling $105, and a $9 charge for printed checks. In reviewing his cash records, White identifies outstanding checks totaling $604 and a January 31 deposit in transit of $1,770. During January, he recorded a $280 check for the salary of a part-time employee as $28. White's Cash account shows a January 31 balance of $1,950. E: (Click the icon to view the bank reconciliation.) Requirement 1. Use the bank reconciliation provided to make the journal entries that White should record on January 31 to update his Cash account. Include an explanation for each entry. (Record the transactions in the order they appear on the bank reconciliation. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Accounts and Explanations Date Debit Credit Jan 31

Answer 1

Answer: Date Credit Debit 320 Jan 31 320 Jan 31 252 General Journal Cash Rent Revenue (EFT Collection of rent) Salary Expense Cash (Correction of Book error) Accounts Receivable Cash (NSF checks returned by bank) Miscellaneous Expense ($8 + $9) Cash (Bank Service charge and charge for printed checks) Jan 31 105 105 Jan 31