On July 31, Blossom Ltd. had a cash balance of $10,350 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $17,380. A comparison of the bank statement with the Cash account revealed the following:

1.		The bank statement included service charges and debit and credit card processing fees of $90.
2.		The bank statement included electronic collections from customers on account totalling $4,180. Blossom had not recorded the EFT.
3.		A deposit of $2,480 made by another company was incorrectly added to Blossom’s account by the Caisse Populaire.
4.		Salaries of $3,360 were paid electronically during the month. The company has already recorded these.
5.		Cheques outstanding on June 30 totalled $2,190. Of these, $1,730 worth cleared the bank in July. All cheques written in July cleared the bank in July.

Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)

BLOSSOM LTD. Bank Reconciliation July 31
Bank service chargesCash balance per bank statementDeposit incorrectly posted by bankOutstanding chequesReconciled cash balance per bankEFT collections				$
AddLess:
Outstanding chequesDeposit incorrectly posted by bankCash balance per bank statementBank service chargesEFT collectionsReconciled cash balance per bank		$
Cash balance per bank statementOutstanding chequesDeposit incorrectly posted by bankReconciled cash balance per bankEFT collectionsBank service charges
Deposit incorrectly posted by bankEFT collectionsOutstanding chequesReconciled cash balance per bankBank service chargesCash balance per bank statement				$
Reconciled cash balance per booksOutstanding chequesDeposit incorrectly posted by bankEFT collectionsCash balance per booksBank service charges				$
AddLess: Outstanding chequesReconciled cash balance per booksCash balance per booksBank service chargesDeposit incorrectly posted by bankEFT collections
AddLess: Bank service chargesCash balance per booksEFT collectionsOutstanding chequesDeposit incorrectly posted by bankReconciled cash balance per books
EFT collectionsOutstanding chequesReconciled cash balance per booksDeposit incorrectly posted by bankBank service chargesCash balance per books				$

List of Accounts

Prepare any journal entries required from the reconciliation. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 31
	(To record EFT collections)
31
	(To record bank service charge)

Answer rating: 100% (QA)

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