On August 31, 2019, the balance in the checkbook and the Cash account of the...
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Accounting
On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,370. The balance shown on the bank statement on the same date was $13,247. Notes The firms records indicate that a $1,550 deposit dated August 30 and a $711 deposit dated August 31 do not appear on the bank statement. A service charge of $7 and a debit memorandum of $370 covering an NSF check have not yet been entered in the firms records. (The check was issued by Art Corts, a credit customer.)
The following checks were issued but have not yet been paid by the bank: Check 712, $ 120 Check 713, $ 135 Check 716, $ 248 Check 736, $ 587 Check 739, $ 88 Check 741, $ 130
A credit memorandum shows that the bank collected a $2,134 note receivable and interest of $73 for the firm. These amounts have not yet been entered in the firms records.
Required: Prepare a bank reconciliation statement for the firm as of August 31.
Record general journal entries for items on the bank reconciliation statement that must be journalized. Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?
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