On August 2, Northern Motel receives its bank statement (shown on the next page). The company deposits its receipts in the bank and makes all payments by check. The debit memo for $ 37 is for an NSF check written by T. R. Royce. Check no. 1617 for $ 75.50, payable to Mitchel Company (a creditor), was incorrectly recorded in the checkbook and journal as $ 57.50.
The ledger balance of Cash as of July 31 is $ 1,909.30. Outstanding checks as of July 31 are no. 1631, $ 118.20; no. 1632, $ 78.20; and no. 1633, $ 178.36. The accountant notes that the July 31 deposit of $ 630 did not appear on the bank statement.

1. Prepare a bank reconciliation as of July 31 assuming that the debit memos have not been recorded.
2. Record the necessary journal entries.
3. Complete the bank form to determine the adjusted balance ofcash.

  • CreatedOctober 21, 2014
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