- At The End Of The Month Of July You Close The Books Of Your Company And Received The Bank Statement You Are Ready To St 1 (92.35 KiB) Viewed 10 times
None of the other alternatives are correct
Dr. Cash $500 Cr. Phone Expenses $500 (to reflect the automaticpayment of the phone - auto withdraw).
Dr. Cash $200 Cr. Interest revenue $200 (to reflect interestearned on bank balance).
Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for themonth)
At the end of the month of July you close the books of your company and received the bank statement. You are ready to start with the Adjusting journal entries and realized that a bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank add: Deposits in Transit deduct: Outstanding Cheques Balance per Books Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 Deposits Cheques Balance July 31 Deposits Cheques Third you look at the bank statement provided by your bank and you see the following: Note collected Bank service charge NSF cheque Interest received $12,000 $ 7,300 $ 4,800 Autowithdrawals $10,000 $ 1,800 $(2,200) $ 9,600 $12,430 $ 6,000 $ 4,000 $ 1,000 $ 20 $ 150 $ 200 $ 500