Asked by Brooke Rupert on May 13, 2024
Verified
The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998.?
(a)Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495.
(b)Deposits in transit not recorded by bank, $778.
(c)Bank debit memo for service charges, $40.
(d)Bank credit memo for note collected by bank, $23,985 plus $885 interest.
(e)Bank debit memo for $756 NSF
(not sufficient funds) check from Calin Sams, a customer.
(f)Checks outstanding, $1,860.
Record the appropriate journal entries that would be necessary for Jeffrey Co.
Journal Entries
A method used to enter an accounting transaction into the general journal, documenting the debit and credit effects on specific accounts.
Cash Sales
Sales transactions where payment is received from the buyer immediately at the time of the sale, typically in cash or equivalent.
Deposits In Transit
Funds that have been deposited by a company but have not yet been recorded by the bank.
- Recognize and elucidate the elements of a bank reconciliation and its significance.
Verified Answer
KL
Katie LuebckeMay 19, 2024
Final Answer :
? Cash 25,320 Notes Receivable 23,985 Interest Revenue 885 Sales 450 Accounts Receivable, Calin Sams 756 Miscellaneous Administrative Expense 40 Cash 796\begin{array} { l r r } \text { Cash } & 25,320 & \\~~~\text { Notes Receivable } & & 23,985 \\~~~\text { Interest Revenue } & & 885 \\~~~\text { Sales } & & 450 \\& & \\\text { Accounts Receivable, Calin Sams } & 756& \\\text { Miscellaneous Administrative Expense } &40 & \\~~~\text { Cash } & &796\end{array} Cash Notes Receivable Interest Revenue Sales Accounts Receivable, Calin Sams Miscellaneous Administrative Expense Cash 25,3207564023,985885450796
Learning Objectives
- Recognize and elucidate the elements of a bank reconciliation and its significance.