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The following is a bank reconciliation for Usman company as of July 31.

DescriptionAmountTotal
Balance per bank statement, July 316,476
Add: Deposit in transit5,720Single line
Single line12,196
Less: Outstanding checks6,024Single line
Adjusted balance, July 31Single line6,172Double line
Balance per ledger, July 316,254
Add: Error correction*98Single line
Single line6,352
Less: NSF check114180Single line
Service and collection charges66Single lineSingle line
Adjusted balance, July 31Single line6,172Double line

 

* misrecorded payment on account

Prepare the journal entry or entries needed to adjust or correct the Cash account.

Journal
DateDescriptionDebitCredit
July 31
July 31
July 31
July 31
July 31



Review the results from preparing Let's Be Safe Security Systems bank reconciliation.

Bank
DescriptionAmount
Balance (ending)5,049
Subcategory,ADD:
Deposits in transit306Single line
Single line5,355
Subcategory,SUBTRACT:
Outstanding checks1,695Single line
Adjusted BalanceSingle line3,660Double line

 

CHECKBOOK (COMPANY)
DescriptionAmount
Balance (ending)3,039
Subcategory,ADD:
Bank Collections623
Interest Revenue13
Subcategory,SUBTRACT:
Service Charge15Single line
Adjusted BalanceSingle line3,660Double line

 

Journalize the company’s transactions that arise from the bank reconciliation.

Journal
DateDescriptionDebitCredit
December 31
December 31
December 31
December 31
December 31


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