Makoika Children€™s Wear banks online with Example Bank. It is August 3, 2015, and you have been asked to reconcile the bank statement as at July 31. You gather the following information:
JULY BANK STATEMENT (note that the later dates are at the top because it is a copy of the online statement):

CASH ACCOUNT TRANSACTIONS FOR JULY:
GL ACCOUNT: 1060 Cash Account
For the period of July 01-15 to July 31-15

BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30):

Instructions
1. Prepare a bank reconciliation as at July 31, 2015. Assume that any errors in recording deposits or cheques were made by the company.
2. Journalize any necessary entries.
3. What should be the balance of the Cash Account as at July 31, 2015?

Transcribed Image Text:

EXAMPLE BANK BUSINESS ACCOUNT 30423442 July 2015 Balance as at July 31, 2015: $(67.29) DATE DESCRIPTION Bank Charge EFT CHQ#1388 CHQ#1387 CHQ#1384 CHQ#1371 DEPOSIT CHQ#1 386 CHQ#1383 CHQ#1385 DEPOSIT EFT DEPOSIT CHQ#1381 CHQ#1380 CH Q#1382 DEPOSIT |WITHDRAWALS I DEPOSITS BALANCE Jul 31, 2015 Jul 31, 2015 Jul 31, 2015 Jul 30, 2015 Jul 27, 2015 Jul 27, 2015 Jul 26, 2015 Jul 24, 2015 Jul 23, 2015 Jul 19, 2015 Jul 19, 2015 Jul 18, 2015 Jul 12, 2015 Jul 10, 2015 Jul 09, 2015 Jul 08, 2015 Jul 04, 2015 67.29 17.34 7,197.07 8,067.42 8,440.57 8,472.46 9,417.67 3,107.50 3,525.95 4,315.03 7,312.37 558.67) 8,727.82 7,559.45 7,761.61 8,200.00 14,927.91 49.95 7,214.41 870.35 373.15 31.89 945.21 6,310.17 418.45 789.08 2,997.34 7,871.04 9,286. 49 1,168.37 202.16 438.39 6,727.91 8,458.50 23,808.08 30,344.78 DATE CREDIT BALANCE Dr. (Cr.) DEBIT Opening Balance July 4 0 Bank Deposit 8,458.50 July 5 July 11 1,618.37 18 7,871.04 Bank Deposit NO 1387 NO 1388 NO 1390 6,310.17 6 2 10,942.61 35,200.69 29,416.44 Cash balance according to bank statement Deduct outstanding cheques: $6,469.41 No. 1371 $ 905.21 041.93 1372 1, 1.987.14 ,482.27 Adjusted balance... Cash balance according to company's records.. Adjusted balance $0,532.2:2 49.95 $ 482.27