The information that follows is available from the general ledger and the bank statement of the Gentry
Question:
1. Bank statement balance, August 31 $1,342.50
2. Note collected by the bank not previously recorded by Gentry 600.00
3. Interest on the preceding note (not previously recorded) 25.00
4. NSF check returned with the bank statement (not previously recorded) 212.60
5. Outstanding checks at the end of August 684.70
6. Bank service charge for August 12.85
7. Deposit in transit, August 31 329.42
Required
1. Starting with the bank statement balance, prepare a schedule to determine Gentry’s cash balance on August 31, 2007, prior to any required adjustments.
2. Prepare a bank reconciliation to determine Gentry’s adjusted cash balance on August 31, 2007.
3. Prepare the journal entries necessary to bring Gentry’s cash account balance up to date.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Question Posted: