Question

The bank portion of the bank reconciliation for Triad Imports, Inc. at July 31, 2014, is shown below.


The adjusted cash balance per bank agreed with the cash balance per books at July 31.
The August bank statement showed the following checks and deposits.



The cash records per books for August showed the following.


The bank statement contained two bank memoranda:
1. A credit of $1,670 for the collection of a $1,600 note for Triad Imports plus interest of $80 and less a collection fee of $10. Triad Imports has not accrued any interest on the note.
2. A debit for the printing of additional company checks $70. At August 31, the cash balance per books was $5,478, and the cash balance per bank statement was $13,563. The bank did not make any errors, but Triad Imports, Inc. made two errors.

Instructions
(a) Using the four steps in the reconciliation procedure described in the textbook, prepare a bank reconciliation at August 31, 2014.
(b) Prepare the adjusting entries based on the reconciliation.


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  • CreatedApril 07, 2014
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