Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31.August 31 cash receipts of $3,140 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check.Outstanding checks as of August 31 total $3,020.In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services. Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation.

The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Answered: Organic Food Company's Cash account…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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Organic Food Company's Cash account shows a $7,400 debit balance and its bank statement shows $6,490 on deposit at the close of business on August 31.

August 31 cash receipts of $3,140 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement.
The bank statement shows a $310 NSF check from a customer; the company has not yet recorded this NSF check.
Outstanding checks as of August 31 total $3,020.
In reviewing the bank statement, an $270 check written by Organic Fruits was mistakenly drawn against Organic Food’s account.
The August 31 bank statement lists $210 in bank service charges; the company has not yet recorded the cost of these services.

Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation.

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