Problem $9\mathrm{.}4$A $($Static$)$ Preparing a bank reconciliation statement and journalizing entries to adjust the

cash balance. LO $9-5,9-6$

On August $31,20$X$1,$ the balance In the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $$12,831.$ The

balance shown on the bank statement on the same date was $$13,677.$

Notes

The firm's records indicate that a $$1,700$ deposit dated August $30$ and a $$701$ deposit dated August $31$ do not appear on the bank

statement.

b$.$ A service charge of $$35$ and a deblt memorandum of $$250$ covering an NSF check have not yet been entered in the firm's

records. $($The check was Issued by Andrew Corollo, a credit customer.$)$

c$.$ The following checks were issued but have not yet been pald by the bank:

d$.$ A credit memorandum shows that the bank collected a $$2,095$ note recelvable and interest of $$55$ for the firm. These amounts

have not yet been entered in the firm's records.

Requlred:

Prepare a bank reconcillation statement for the firm as of August $31.$

Record general journal entrles for items on the bank reconcillation statement that must be journalized.

Anolyze:

What effect did the journal entries recorded as a result of the bank reconcillation have on the fundamental accounting equation?

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Bronk Rec

Prepare a bank reconciliation statement for the firm as of August $31.$