On July 31, 20X1, the balance in Northwest Appliance’s checkbook and Cash account was $9,318.59. The balance shown on the bank statement on the same date was $10,442.03.

NOTES
a. The following checks were issued but have not yet been paid by the bank: Check 533 for $251.95, Check 535 for $222.50, and Check 537 for $642.40.
b. A credit memorandum shows that the bank has collected a $1,437 note receivable and interest of $30 for the firm. These amounts have not yet been entered in the firm’s records.
c. The firm’s records indicate that a deposit of $991.07 made on July 31 does not appear on the bank statement.
d. A service charge of $24.34 and a debit memorandum of $445 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Bob Walker, a credit customer.)

INSTRUCTIONS
1. Prepare a bank reconciliation statement for the firm as of July 31, 20X1.
2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Use 1 as the journal page number. Date the entries July 31, 20X1.

Analyze: 

After all journal entries have been recorded and posted, what is the balance in the Cash account?