Problem 6-4A Preparing a bank reconciliation and recording adjustments LO P3

[The following information applies to the questions displayed below.]

The following information is available to reconcile Branch Companys book balance of cash with its bank statement cash balance as of July 31.

1. On July 31, the companys Cash account has a $24,986 debit balance, but its July bank statement shows a $26,922 cash balance.
2. Check No. 3031 for $1,340, Check No. 3065 for $446, and Check No. 3069 for $2,108 are outstanding checks as of July 31.
3. Check No. 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270.
4. The July bank statement shows the bank collected $7,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
6. The July statement shows a $11 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
7. Branchs July 31 daily cash receipts of $8,632 were placed in the banks night depository on that date but do not appear on the July 31 bank statement. 2/2 a On July 31, the companys Cash account has a $24,986 debit balance, but its July bank statement shows a $26,922 cash balance. b Check No. 3031 for $1,340, Check No. 3065 for $446, and Check No. 3069 for $2,108 are outstanding checks as of July 31. c Check No. 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270. d The July bank statement shows the bank collected $7,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. f The July statement shows a $11 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g Branchs July 31 daily cash receipts of $8,632 were placed in the banks night depository on that date but do not appear on the July 31 bank statement.
8. Journal entry worksheet a Record the adjusting entry required, if any, related to the July 31 cash balance. b Record the adjusting entry required, if any, related to the outstanding checks. c Record the adjusting entry required, if any, related to Check No. 3056. d Record the adjusting entry required, if any, for the collection of the note by bank for Branch. e Record the adjusting entry required, if any, related to the NSF check. f Record the adjusting entry required, if any, related to bank service charges. g Record the adjusting entry required, if any, related to the July 31 deposit.

9. Transaction	General Journal	Debit	Credit
   a.

Required: 1. Prepare the bank reconciliation for this company as of July 31. BRANCH COMPANY Bank Reconciliation July 31 26,922 Book balance Bank statement balance 24 24,986 Add: Add: Deposit of July 31 26,922 24,986 Deduct: Deduct: Adjusted bank balance 26,922 Adjusted book balance 24 24,986