On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019, bank statement from the bank's Website. The balance shown on the bank statement was $28,660. The July 31, 2019, balance in the Cash account in the general ledger was $14,892.Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank's records and the company's Cashaccount in the general ledger: An electronic funds transfer for $13,800 from Foncier Ricard, a customer located in France, was received by the bank on July 31.
Check 1422 was correctly written and recorded for $1,200. The bank mistakenly paid the check for $1,260.
The accounting records indicate that Check 1425 was issued for $66 to make a purchase of supplies. However, examination of the check online showed that the actual amount of the check was for $96.
A deposit of $740 made after banking hours on July 31 did not appear on the July 31 bank statement.
The following checks were outstanding: Check 1429 for $1,243, and Check 1430 for $135.
An automatic debit of $256 on July 31 from CentralComm for telephone service appeared on the bank statement but had not been recorded in the company's accounting records.
Required:
Prepare a bank reconciliation for the firm as of July 31.
Record general journal entries for the items on the bank reconiliation that must be journalized.