The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: A deposit of$6,794.62 was received by the bank on August 31 after the bank statement was prepared. Cheques #251 for $1,200 and #260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020. The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600. The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000 The bank credited a deposit of $200 as $2,000 to Corey’s Construction account. A cheque for $13,500 from a customer Ali Woods was returned for insufficient funds. The bank charged $50 for Wood’s NSF cheque. The company’s policy states that the bank charges associated with NSF cheques are to be recovered from the customer. A note was collected by the bank of $21,000 on August 31 which included interest of $1,500. Adebitmemofromthebankshowedservicechargeamountingto$2,500asat August 31, 2020. Required: Prepare the necessary journal entries for Corey’s Construction Company at August 31, 2020.
The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following:
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A deposit of$6,794.62 was received by the bank on August 31 after the bank statement was prepared.
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Cheques #251 for $1,200 and #260 for $1,333.25 were not presented to the bank for encashment as at August 31, 2020.
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The bank erroneously debited a cheque drawn Corey’s Construction as $16,000 instead of $1,600.
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The company’s accountant recorded a $3,500.00 cheque for payment of accounts payables as $35,000
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The bank credited a deposit of $200 as $2,000 to Corey’s Construction account.
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A cheque for $13,500 from a customer Ali Woods was returned for insufficient funds. The bank charged $50 for Wood’s NSF cheque. The company’s policy states that the bank charges associated with NSF cheques are to be recovered from the customer.
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A note was collected by the bank of $21,000 on August 31 which included interest of $1,500.
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Adebitmemofromthebankshowedservicechargeamountingto$2,500asat August 31, 2020.
Required:
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Prepare the necessary
journal entries for Corey’s Construction Company at August 31, 2020.
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