Question

The following information pertains to the bank transactions of Crawford Company:

a. Cash on the books as of September 30 was $499. Cash as shown on the bank statement for the same date was $1,330.

b. A deposit of $160, representing cash receipts of September 30, did not appear on the bank statement.

c. Outstanding checks totaled $240.

d. Bank service charges for September amounted to $9.

e. The bank collected for Crawford Company $840 (which includes $40 interest) on a note left for collection.

f. An NSF check for $80 from a customer, Jack Betz, was returned with the bank statement.

Required: Prepare the necessary journal entries to update the Cash account.

Answer 1

Solution:

Journal Entries - Crawford Company
Date	Particulars	Debit	Credit
30-Sep	Bank Service Charges Dr	$9.00
	To Cash		$9.00
	(Being service charges debited by bank)
30-Sep	Cash Dr	$840.00
	To Note receivables		$800.00
	To Interest revenue		$40.00
	(Being note collected by bank)
30-Sep	Accounts receivables Dr	$80.00
	To Cash		$80.00
	(To record NSF check from customer)