Question

Bank reconciliation information for Kaden Co. for May 31 is as follows: The bank statement balance is $2,936. The cash account balance is $3,194. Outstanding checks amounted to $465. Deposits in transit are $655. The bank service charge is $50. A check for $97 for supplies was recorded as $79 in the ledger. Record the appropriate journal entry for Kaden Co. If an amount box does not require an entry, leave it blank.

Answer 1

Answer:

The Journal entry are as follows:

(i) On May 31,

Miscellaneous Expense A/c   Dr. $50

To cash A/c                                           $50

(To record bank service charges)

(ii) On May 31,

Supplies A/c    Dr. $18

To cash A/c                  $18

(To record difference in recording)

Workings:

Supplies = $97 - $79

              = $18