Question

someone that can help please . i need help with the General journal . thank you in advance .

BANK RECONCILIATION XTRA CREDIT Balboa company sells refrigerators to the general public. On November 30,2009 Its cash ledger balance was 15,890. The bank balance was 17,420 A review of Balboa's transactions revealed the following: • Balboa wrote 75,000 worth of checks. However a check for $2,500 from September and one for $3200 from August had not cleared the bank as of November 30. Cash receipts total 5,200. • An EFT for 1000 was made to Jones Inc. for refrigerators purchased on credit • A check that was written for 2300 was recorded by the bank for 300. • A check for 4100 that was made out to Sampson Rentals for the monthly rent was recorded in the cash ledger for 1400 Johnson a customer made a $7500 loan payment in the bank. The customer signed a note when the loan was made. (Loan principal was 7000 and interes was 500) An NSF check for 3120 was returned and a $30 fee was charged to Balboa's account A check for 2,000 made out to Lewis Inc. was correctly recorded by the bank bu was never recorded in the cash ledger • The bank paid $380 for interest earned on the checking account.

Answer 1

1.  

Balboa Company Bank Reconciliation Statement November 30, 2009
Cash balance as per bank		$ 17,420	Cash balance per books		$ 15,890
Add:			Add:
Deposits in Transit		5,200	Collection of Note Receivable by bank	7,500
			Interest earned	380
		22,620			7,880
					23,770
Less:			Less:
Outstanding checks	5,700		EFT	1,000
Error in Writing Check	2,000		Error in recording check	2,700
		(7,700)	NSF check	3,120
			Bak charges	30
			Check not recorded	2,000	(8,850)
Adjusted bank balance		$ 14,920	Adjusted book balance		$ 14,920

2. In the books of Balboa Co. :

Adjusting entries:

No.	Account Titles	Debit	Credit
		$	$
a.	Cash	7,500
	Notes Receivable		7,000
	Interest Income		500
	To record collection of notes receivable
b.	Bank Service Charge Expense	30
	Cash		30
	To record bank charge on NSF check
c.	Accounts Receivable	3,150
	Cash		3,120
	Bank Service Charge Expense		30
	To record NSF check as a receivable
d.	Rent Expense	2,700
	Cash		2,700
	To correct error in recording check
e.	Accounts Payable	2,000
	Cash		2,000
	To record check omitted from cash ledger.
f.	Cash	380
	Interest Income		380
	To record interest earned on checking account