Practice Problem 1 (Part Level Submission)

Rodriguez Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

		Cash in Bank
		Per Books		Per Bank
Balance, July 1		$18,030		$16,230
July receipts		81,830
July credits				83,910
July disbursements		77,580
July debits				75,186
Balance, July 31		$22,280		$24,954

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $4,910 for the collection of a $4,830 note plus interest revenue of $80. The July debits per bank consist of checks cleared $75,120 and a debit memorandum of $66 for printing additional company checks. You also discover the following errors involving July checks. (1) A check for $370 to a creditor on account that cleared the bank in July was journalized and posted as $730. (2) A salary check to an employee for $355 was recorded by the bank for $255. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,430 and outstanding checks of $6,630.

Your answer is partially correct. Prepare a bank reconciliation at July 31, 2017. (List items that increase cash balance first. Reconcile cash balance per bank first.) RODRIGUEZ COMPANY Bank Reconciliation July 31, 2017 Cash balance per bank statement 24954 Add Deposit in transit 11260 36214 Less X Outstanding checks 9090 Bank error -360 8730 Adjusted cash balance per bank 27484 Cash balance per books 22280 Add Collection of note receivable by bank 4910 Bank error 360 5270 27550 > Less Check printing charge 66 Adjusted cash balance per books 27484 (b) Journalize the adjusting entries to be made by Rodriguez Company. Assume that interest on the note has not been accrued. (Credit acco No. Account Titles and Explanation Debit Credit July 31 (To record collection of note receivable.) July 31 (To record error on check.) July 31 (To record check printing charge.)