Question

Problem 9.8A Preparing a bank reconciliation statement and Journalizing entries to adjust the cash balance. LO 9-9, 9-10, 9-11 On August 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The balance shown on the bank statement was $28.830. The Myt 2019, balance in the Cash account in the general ledger was $13.535 Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cash account in the general ledge An electronic funds transfer for $15.00 from Foncercand a customer located in France, was received by the bank on my Check 1422 was correctly with and recorded for $200The bank mistakenly paid the check for $1280 The accounting records indicate that he was used for $66 to make a purchase of supplies. However, examination of the Check online showed that the actual amount of the check was for $96 d. A deposit of $830 made her bag hours on 31 did not appear on the 31 bank statement e. The following checks were outstanding Check 1429 for $4256 and Check 30 for $148 t An automatic debt of $269 only from Central Comfortelephone service appeared on the bank statement but had not been recorded in the company's accounting records Required: 1. Prepare a bank reconciliation for the firm as of July 31 2. Record general journal entries for the items on the bank recondition that must be journalized Analyzer What effect on total expenses occurred as a result of the general journal entries recorded? Complete this question by entering your answers in the tabs below. Bank Rec St ore Analyse Prepare a bank reconciliation for the firm as of July 31. WESTERN < Prev 3 of 3 Next >

Answer 1

Requirement 1: Prepare bank reconciliation statement as follows

WI Inc
Bank Reconciliation Statement
July 31, 2019
Balance on bank statement		$28,830
Additions:
Deposit in transit	$830
Error in recording check no. 1422 ($1,280 − $1,200)	$80	$910
		$29,740
Deductions:
Check No. 1429	$1,256
Check No. 1430	$148
Total deductions		$1,404
Adjusted bank balance		$28,336
Balance in books		$13,535
Additions:
EFT received on account		$15,100
		$28,635
Deductions:
Online payment for telephone charges	$269
Error in recording check no. 1425 ($96 − $66)	$30	$299
Adjusted book balance		$28,336

Requirement 2: Prepare the following journal entries

Date	Account Title and Explanation	Debit	Credit
July 31	Supplies	$30
	Cash		$30
	To correct for check no 1425
July 31	No journal entry required
	To record outstanding checks
July 31	Telephone Expenses	$269
	Cash		$269
	To record telephone expenses paid online
July 31	No journal entry required
	To record deposit in transit
July 31	No journal entry required
	To correct the error in recording check 1422
July 31	Cash	$15,100
	Accounts Receivable		$15,100
	To record cash collected on account through EFT

Requirement 3:

Total expenses will increase by $269 because of the telephone expenses paid online for the reporting period.