Roper Electronics Received Its Bank Statement for the Month of August

question 88

Essay

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740.Roper determined that check #613 for $155 and check #601 for $420 were both outstanding.Also,a $6,900 deposit for August 30 was in transit as of the end of the month.Northern Regional Bank also collected a $5,000 notes receivable on August 1 that was issued March 1.Accrued interest is $250.Northern Regional Bank charged a $35 fee for the collection service.The bank statement reveals a bank service charge of $20.A customer check for $68 was returned with the bank statement marked "NSF." The ending balance of the Roper cash account is $12,938.
Prepare a bank/account reconciliation and any necessary journal entries for the reconciliation.

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash, deposits, and other liquid assets.

Medium of Exchange

is an intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.

Money Multiplier

The ratio of the amount of money created by the banking system through loans and deposits to the amount of money injected into the economy by the central bank.

Money Multiplier

The ratio of the amount of deposits created by banks to the amount of the central bank's monetary base that has been injected into the economy.