the following information applies to the questions displayed below.\norganic food companys cash account…

the following information applies to the questions displayed below.\norganic food companys cash account shows a $7,000 debit balance and its bank statement shows $6,210 on deposit at the close of business on august 31.\na. august 31 cash receipts of $2,740 were placed in the banks night depository after banking hours and were not recorded on the august 31 bank statement.\nb. the bank statement shows a $270 nsf check from a customer, the company has not yet recorded this nsf check.\nc. outstanding checks as of august 31 total $2,620.\nd. in reviewing the bank statement, an $230 check written by organic fruits was mistakenly drawn against organic foods account.\ne. the august 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.\n\nqs 6 - 13 (algo) entries from bank reconciliation lo p3\n\nprepare any necessary journal entries that organic food company must record as a result of preparing the bank reconciliation. note: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\n\nview transaction list\n\njournal entry worksheet\n\nthe august 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.\n\nnote: enter debits before credits.\n\ntransaction general journal debit credit\ne 170 170

the following information applies to the questions displayed below.\norganic food companys cash account shows a $7,000 debit balance and its bank statement shows $6,210 on deposit at the close of business on august 31.\na. august 31 cash receipts of $2,740 were placed in the banks night depository after banking hours and were not recorded on the august 31 bank statement.\nb. the bank statement shows a $270 nsf check from a customer, the company has not yet recorded this nsf check.\nc. outstanding checks as of august 31 total $2,620.\nd. in reviewing the bank statement, an $230 check written by organic fruits was mistakenly drawn against organic foods account.\ne. the august 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.\n\nqs 6 - 13 (algo) entries from bank reconciliation lo p3\n\nprepare any necessary journal entries that organic food company must record as a result of preparing the bank reconciliation. note: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\n\nview transaction list\n\njournal entry worksheet\n\nthe august 31 bank statement lists $170 in bank service charges; the company has not yet recorded the cost of these services.\n\nnote: enter debits before credits.\n\ntransaction general journal debit credit\ne 170 170

Answer

Explanation:

Step1: Record NSF check

The company needs to record the NSF (non - sufficient funds) check as an expense and reduce the cash balance. The NSF check amount is $270. So, debit Accounts Receivable (to show the customer still owes the money) and credit Cash.

General Journal Debit Credit
Accounts Receivable 270
Cash 270

Step2: Record bank service charges

The bank service charges of $170 need to be recorded as an expense. Debit Bank Service Charges Expense and credit Cash.

General Journal Debit Credit
Bank Service Charges Expense 170
Cash 170

Step3: Correct the wrong - drawn check

The $230 check wrongly drawn against the company's account should be added back to the cash balance. Debit Cash and credit Accounts Payable (assuming it was a payment that wasn't actually made by the company).

General Journal Debit Credit
Cash 230
Accounts Payable 230

Answer:

Transaction General Journal Debit Credit
b Accounts Receivable 270
Cash 270
e Bank Service Charges Expense 170
Cash 170
d Cash 230
Accounts Payable 230