The Following Information Is Available for Golden Image,Inc

question 68

Essay

The following information is available for Golden Image,Inc.:
• The bank statement indicated a monthly service charge of $200.
• Golden Image made a deposit on June 30,but this deposit did not appear on the bank statement until July 6.The amount of the deposit was $2,660.
• The bank collected an account receivable of $900 from one of Golden Image's customers.
• The bank also collected interest revenue for Golden Image of $99.
• The bank also returned a nonsufficient funds check for $378 from John Able,one of Golden Image's customers.
• Checks #1874 for $1,140,#1898 for $609,and #1899 for $875 were written by Golden Image and sent to the respective companies,but these checks do not appear on the bank statement.
• The balance on the bank statement as of June 30 was $16,711.
• On June 30,the Cash account from Golden Image's books showed an amount of $16,326.
Required:
1.Prepare the bank reconciliation at June 30 for Golden Image,Inc.
2.Prepare the necessary journal entries by Golden Image,Inc.,at June 30.

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Definitions:

Brokerage Fees

Charges that are paid to a broker for executing transactions or providing specialized services.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits through dividends.

Fair Value Method

An accounting approach where assets and liabilities are valued based on current market prices.

Reported Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, as presented in financial statements.