Question

Mily Company shows a balance of $1,300 in its checking account in its general ledger at October 31. The bank statement for the same account shows a balance of $3,000 at October 31. The following additional information is available:

* Checks written for $380 during the month had not cleared the bank at October 31
* The bank charged service charges of $45 for the month.
* An NSF check for $33 from a customer was returned by the bank.
* The company wrote a check for $100 for utility expense but accidently recorded the check for only $1,778.
* A deposit for $280 made on October 31 did not show up on the bank statement.

Balance per Bank: $3000
Subtract: Outstanding Checks (-)$380
Add: Deposits In Transit $280
True Balance: $2900

Balance per Books: $1300
Subtract: Bank Charges (-)$45
Subtract: NSF Check (-)$33
Add: Book Error $1678
True Balance: $2900

What journal entry must be made for each of the following items from the bank reconciliation? If no entry is needed, select "No Entry Needed" from the dropdown list (for both debit and credit) and leave the amounts blank.


Checks written for $380 during the month had not cleared the bank at Oct. 31.

The bank charged a service charges of $45 for the month.

An NSF check for $33 from a customer was returned by the bank.

The company wrote a check for $100 for utility expense but accidently recorded the check for $1778.

A deposit for $280 made on October 31 did not show up on the bank statement.

Answer 1

Journal entries required for each of the following items from the bank reconciliation is as shown below:

Date	Particulars	L.F	Amount ($)	Amount ($)
Oct-31	Cash		1,678
	Utility Expense			1,678
	(for utility expense check recorded by more amount)
Oct-31	Bank Service Charges		45
	Cash			45
	(for bank charges)
Oct-31	Account Receivable		33
	Cash			33
	(For NSF check recorded)