Question

The following information relates to Carla Vista Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $17,790. During the month of July, Carla Vista recorded cash receipts of $21,390 and cash payments of $23,840 in the general ledger Cash account. At July 31, Carla Vista Limited had an reconciled cash balance of $16,644. An examination of the company's July bank statement shows a balance of $19,584 on July 31; outstanding cheques $3,954; deposits in transit $1,774; EFT collections on account that were not yet recorded on the books $2,19 1; NSF cheque $1,249; NSF fee $71; and bank services charges $111. Prepare the necessary journal entries required on July 31 for Carla Vista. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Date July 31 (To record EFT collections on account) (To record bank service charges) (To record NSF cheque and fee)

Answer 1

Journal Entries Account Title and Explanation Cash Debit Credit Date 31-Jul 2,191 2,191 Accounts Receivable (To record EFT collections on account) 31-Jul Miscellaneous Expense 111 Cash 111 (To record bank service charges) Accounts Receivable ($1,249+$71) $ 31-Jul 1,320 $ Cash 1,320 (To record NSF cheque and fee)