The following information is available to reconcile Branch Companys book balance of cash with its bank statement
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Question:
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.
- On July 31, the company’s Cash account has a $25,741 debit balance, but its July bank statement shows a $27,178 cash balance.
- Check Number 3031 for $1,140, Check Number 3065 for $346, and Check Number 3069 for $1,908 are outstanding checks as of July 31.
- Check Number 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.
- The July bank statement shows the bank collected $6,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
- 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.
- The July statement shows a $10 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
- Branch’s July 31 daily cash receipts of $7,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.
Required:
1. Prepare the bank reconciliation for this company as of July 31.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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