Question

6 Bank reconciliation Dean Knight operates asking center, Roll Around USA. Herceived the company's monthly bank statement January 31 from W Click to view the bank want formation) (Click the con la view the bankroto Readquirement Record the EFT deposit Journal Accounts and Explanations Bank Reconciliation January 31, 2018 Bank Balance, January 31 Deposit in transit Date $ Debit Credit 700 1,805 Jor 3+ 2,505 (507) Less Ostanding checks Adjusted bank balance Books: Balance Wary 31 AldEFT colection $ More info 2.26 Correction of bockerror $ The statement shows an ending balance of 5700 Listed on the statementarea EFTrent collection of 206, a service charge of Sao NSF checks otsing $110, and an $11 charge for printed checks in reviewing his cash records, derfesting checks totaling 5607 and a January 31 depositinranto $1,800. During Jasary, the recorded a $200 check for the say of a parte employee as $26 Knights Cash account Shows 8 January 31 cash balance of Ngeus 110 11 Chame the weak Choose from any list or etter any numbe Print Dore part

Answer 1

Journal entries to be booked will be

Debit ($) Credit ($) 700 700 110 110 Date Account Description Jan 31 2018 Cash Rent Revenue (Rent collection through EFT) Jan 31 2018 Accounts Receivables Cash (Checks returned due to Non Sufficient funds NSF) Jan 31 2018 Service Charges Cash (Service charges charged by bank) Jan 31 2018 Salaries & Wages Expense sh (Check issued for salary corrected) 15 15 234 234

Working

When bank reconciliation is prepared, a journal entry is booked for any adjustment made to the general ledger balance. In the given case too, adjustments will be made for EFT collection by bank, correction of book error, adjustment for NSF checks and charges for printed checks.

EFT will increase the book balance and hence cash/bank account will be debited.

Correction of book error, Adjustment for NSF checks and Charges for printed checks will decrease the book balance and hence cash/bank account will be credited.

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.