Prepare Any Journal Entries Based on the Following Data Regarding

question 97

Essay

Prepare any journal entries based on the following data regarding the bank reconciliation prepared by Corruption Company on July 31, 2014.
a. A customer's cheque for $260 was returned with the bank statement and stamped NSF.
b. Outstanding cheques amount to $650.
c. Service charges for July per bank statement are $25.
d. Cheque #925 for $3,250 for office equipment was erroneously recorded by the bookkeeper as $2,350.
e. The bank erroneously credited Corruption Company's account for a $575 deposit made by Bribe and Bilk Inc.
f. A deposit ticket correctly prepared for $695 appeared on the bank statement as a deposit for $965.
g. Cheque #930 for $900 for rent expense was erroneously recorded by the bookkeeper as $90.

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Definitions:

Contracted Services

Professional services provided by an outside party under the terms of a contractual agreement.

IPA

An acronym that can refer to Independent Practice Associations, which are legal entities organized and owned by a network of independent physicians for the purpose of reducing overhead or contracting with health insurers.

HMO

A health maintenance organization; a type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO.

PPO

Preferred Provider Organization, a health insurance plan that offers a network of healthcare providers to choose from, typically at a lower cost.