Date

Oct 1

Oct 7

Oct 8

Oct 10

Oct 25
 Debit Credit

cash 169,150
debit card expense 850
service revenue 170,000
to record sale of services less debit card expense
: 0.5%*170000 = 850

cash 20,000
service revenue 20,000
to record sale of srevices provided for cash

cash 96,040
credit card expense 1,960
service revenue 98,000
to record sale of services less credit card expense
;2% *98000= 1960

Accounts receivable - Edson CHC 72,000

service revenue 72,000
to record sale of services, terms 2/15, n/30

Sales Discount 1,440

Cash 70,560
Accounts receivable - edson CHC 72,000
to recoed collection of oct 10 credit sale
2%*72000=1440
Of
Office Supplies Merchandise Inventory Postage Expense
paper 22 9-Feb 38 12-Feb 17
stationary 65 25-Feb 20 28-Feb 24
87 58 41

Auto Expenses Delivery Expense

14-Feb 148 23-Feb 8

360
-87
-58
-41
-148
-8
18
-11
7
 Debit Credit
Date

Feb 2 Petty Cash 360

Cash 360
To establish petty cash

Feb 28 Delivery expense 8

Auto expense 148
Postage expense 41
Merchandise inventory 58
Office supplies expense 87
Cash over /short 7
Petty Cash 140
Cash 489

To reimburse fund and increase by $140

Petty Cash
360
349

489
500
Feb 28 Delivery expense 8
Auto expense 148
Postage expense 41
Merchandise inventory 58
Office supplies expense 87
Cash over /short 7
Petty Cash 349 360
-11
Feb 28 Petty Cash 489 349
Cash 489
Exercise 7-10 Preparation of bank reconciliation LO6
CHECK FIGURE: 1. Adjusted book balance = $11,203

The bank reconciliation prepared by Winfield Construction on June 30, 2020, appeared as follows:

June 30, 2020

The Cash account in the general ledger appeared as follows on July 31:

A list of deposits made and cheques written during July, taken from the cash receipts journal and cash 11203
disbursements journal, is shown below:

The following bank statement is available for July:

In reviewing cheques returned by the bank, the bookkeeper noted that cheque #96 written by Winburn
Construction in the amount of $420 was charged against Winfield’s account in error by the bank. The NSF
cheque was regarding a customer account, Jim Anderson.
Required
1. Prepare a bank reconciliation at July 31.
2. Prepare the necessary journal entries to bring the general ledger Cash account into agreement
with the adjusted balance on the bank reconciliation.
Part 1

Windfield Construction

Bank Reconciliation

31-Jul-20
General Ledger Account
Bank Account
ending book balance 11,668
Bank Account
11,887 deduct :NSF cheque 465
ending bank statement balance
640
add : deposits in transit
420
add : bank error CH#96

deduct : o/s cheques

964
CH#53
780 adjusted book balance 11,203
CH#14
11,203
adjusted bank balance
Part 2
Date Account Titles Debit Credit

31-Jul Accounts receivable - Jim Anderson 465

Cash 465

to record cheque returned NSF

Analysis Component: If the journal entries in Part 2 were not recorded, what financial statement elements
(profit, assets, liabilities, and equity) would be over- or understated?