Question: The cash data of Big City Automotive for July 2014

The cash data of Big City Automotive for July 2014 follow:

Big City Automotive received the following bank statement on July 31, 2014:

Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance expense.
b. The unauthorized signature check was received from a customer and returned by the bank unpaid.
c. The correct amount of check number 3115, a payment on account, is $1,390. (Big City Automotive’s accountant mistakenly recorded the check as $1,930.)
d. Te bank collected a note receivable for Big City Automotive.

1. Prepare the Big City Automotive bank reconciliation at July 31, 2014.
2. Prepare the necessary journal entries at July 31, 2014.
3. Describe how a bank account and the bank reconciliation help the general manager control Big City Automotives’cash.
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  • CreatedJuly 25, 2014
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