Q. For each bank reconciliation item, describe the appropriate action an accountant should take. If a...

Q. For each bank reconciliation item, describe the appropriate action an accountant should take. If a journal entry is needed, please make one (assume a date of July 31st).

a) Of three cheques written in July (no. 15 for $35.00, no. 16 for $49.32, and no. 17 for $231.09), two cheques (no. 15 and no. 17) are outstanding.

b) A customer visited the company bank and deposited $300 to settle a bill from last month.

c) The bank charged account management fees of $8.50 and overdraft fees of $20.

d) A customer wired $400 for work completed last week. The electricity bill of $235.70 and gas bill of $201.78 was automatically withdrawn. The company policy is to record e-transfers when they show up on the bank statement.

e) On the evening of July 31st, a company employee deposited an envelope containing a $375 cheque in the bank mail slot. The transaction was not included in the July bank statement.

Expert Solution


Transaction	Appropriate Action	Entry to be passed	Debit	Credit
a) Of three cheques written in July (no. 15 for $35.00, no. 16 for $49.32, and no. 17 for $231.09), two cheques (no. 15 and no. 17) are outstanding.	Deducted from bank balance	No enrty required
b) A customer visited the company bank and deposited $300 to settle a bill from last month.	Added in book balance	Cash	300
		Accounts Recivable		300
c) The bank charged account management fees of $8.50 and overdraft fees of $20.	Deducted from book balance	Bank Charges	8.5
		Overdraft Fees	20
		Cash		28.5
d) A customer wired $400 for work completed last week. The electricity bill of $235.70 and gas bill of $201.78 was automatically withdrawn. The company policy is to record e-transfers when they show up on the bank statement.	Customer Wire- Added in book balance Utlities Bill - Deducted from book balance	Cash	400
		Accounts Recivable		400

		Utilities Expense	437.48
		Cash		437.48
e) On the evening of July 31st, a company employee deposited an envelope containing a $375 cheque in the bank mail slot. The transaction was not included in the July bank statement.	Added in bank balance	No enrty required

ekkarill92 answered 2 years ago

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