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2 March, 00:44

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:

1. Cash balance according to the company's records at July 31, $32,110.

2. Cash balance according to the bank statement at July 31, $31,350.

3. Checks outstanding, $2,870.

4. Deposit in transit, not recorded by bank, $4,150.

5. A check for $170 in payment of an account was erroneously recorded in the check register as $710.

6. Bank debit memo for service charges, $20.

Required:

a. Journalize the entries that should be made by the company.

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Answers (1)
  1. 2 March, 02:42
    0
    Answer and Explanation:

    The journal entries are shown below:

    For the month of July

    Cash $540 $710 - $170)

    To Accounts Payable $540

    (Being the payment received is recorded)

    Bank service charges $20

    To Cash $20

    (Being the service charges is paid for cash is recorded)

    Only these two entries are recorded

    All other transactions are to be ignored
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