Question

Question 2 4/8 View Policies Show Attempt History Current Attempt in Progress On July 31, Oriole Ltd. had a cash balance of $12,690 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $21,513. A comparison of the bank statement with the Cash account revealed the following: 1. The bank statement included service charges and credit card fees of $116. 2. The bank statement included electronic collections from customers on account totalling $5,226. Oriole had not recorded the EFT. 3. Adeposit of $3,126 made by another company was incorrectly added to Oriole's account by the Caisse Populaire. 4. Salaries of $4,166 were paid electronically during the month. The company has already recorded these. 5. Cheques outstanding on June 30 totalled $2,766. Of these, $2,179 worth cleared the bank in July. All cheques written in July cleared the bank in July.

Answer 1

Adjusting entry

Date	account and explanation	Debit	Credit
July 31	Cash	5226
	Account receivable		5226
	(To record EFT collection)
July 31	Bank Charges	116
	cash		116
	(To record bank charges)