Question

Current Attempt in Progress Riverbed Company has just received the August 31, 2020, bank statement, which is summarized below. County National Bank Balance, August 1 Deposits during August Note collected for depositor, including $65 interest Checks cleared during August Bank service charges Balance, August 31 Disbursements Receipts Balance $15,215 $52,293 67,508 1,689 69,197 $56,028 13,169 13,137 13.137 32 The general ledger Cash account contained the following entries for the month of August. Cash Balance, August 1 16.321 Disbursements in August 56,694 Receipts during August 56.840 Deposits in transit at August 31 are $6.171, and checks outstanding at August 31 total $1.705. Cash on hand at August 31 is $503. The bookkeeper improperly entered one check in the books at $147 which was written for $165 for supplies (expense): it cleared the bank during the month of August.

how can I solve these two questions?

Answer 1

Riverbed Company Requirement a. Requirement b. Bank Reconciliation, August 31, 2020 County National Bank Balance per bank statement, August 31, 2020 Add: Cash on hand Deposits in transit 13137 Journal Enteries Date Particulars 31.8.2020 Cash a/c Dr. To Notes Receivable To Interest Revenue (To record collection of note and interest) Debit in $ Credit in $ 1689 1624 503 6171 65 6674 19811 1705 18106 Deduct: Outstanding checks Correct cash balance 32 31.8.2020 Office Expense (Bank Charges) a/c Dr. To Cash (To record August bank charges) 32 Balance per books, August 31, 2020 ($16,321 + $56,840 - $56,694) Add: Note ($1,624) and interest ($65) collected 16467 1689 18156 18 31.8.2020 Supplies Expense a/c Dr. To Cash (To record error in recording check for supplies) Deduct: Bank service charges Understated check for supplies (165 - 147) Correct cash balance 18 18106