On July 5, a company’s accountant downloaded the firm’s June 30 bank statement from the bank website. The accountant noted that an electronic funds transfer for $9,800 from Terra Cota Cataluna, a customer located in Spain, was received by the bank on June 30 but had not been recorded in the company’s accounting records. What effect will this transaction have on the company’s June 30 bank reconciliation?

Electronic funds transfer for $9,800 from Terra Cota Cataluna

Effect of Transaction on the June 30 Bank Reconciliation:

Since it had not been recorded in the accounting books, it will make the balance in the bank statement to exceed the cash account balance by $9,800.

Explanation:

This transaction is regarded as direct credit in the bank account.  It causes a discrepancy between the bank statement balance and the cash account balance.

In preparing the bank reconciliation statement, if you start with the balance as per the cash account, then will add this to this balance.  If it is the only item for reconciliation of the bank statement, it will make the cash account balance to agree with the bank statement balance.

To correct this, a record (journal entry) will be made by debiting the Cash Account and crediting the Accounts Receivable account.

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the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.