The bank portion of the bank reconciliation for Triad Imports, Inc. at July 31, 2014, is shown below.

The adjusted cash balance per bank agreed with the cash balance per books at July 31.
The August bank statement showed the following checks and deposits.

The cash records per books for August showed the following.

The bank statement contained two bank memoranda:
1. A credit of $1,670 for the collection of a $1,600 note for Triad Imports plus interest of $80 and less a collection fee of $10. Triad Imports has not accrued any interest on the note.
2. A debit for the printing of additional company checks $70. At August 31, the cash balance per books was $5,478, and the cash balance per bank statement was $13,563. The bank did not make any errors, but Triad Imports, Inc. made two errors.

Instructions
(a) Using the four steps in the reconciliation procedure described in the textbook, prepare a bank reconciliation at August 31, 2014.
(b) Prepare the adjusting entries based on the reconciliation.

Transcribed Image Text:

TRIAD IMPORTS, INC. Bank Reconciliation July 31, 2014 Cash balance per bank Add: Deposits in transit $9,596 930 $10,526 Less: Outstanding checks Check Amount Check Number 3151 3170 3171 3172 3174 290 812 1,538 1,000 1,172 4,812 S 5,714 Adjusted cash balance per bank 52479407-8 250855360 9311510802 381580 112223 28222750 13703320 1817 085395 7 78888 058709 8111232 D-8 8 8 8 8 8 8 8 8 8 8 Cash Receipts Journal Cash Payments Journal Date 8-3 8-7 8-12 8-17 8-20 8-24 8-27 8-29 8-30 Total $10,668 Amount 1,325 1,152 1,014 1,587 1,159 1,054 1,830 1,067 500 Date Number Amunt Date Number Amount 8-1 8-2 8-2 8-4 3175 802 8-20 3183$93 3176 3177 3178 3179 132 8-22 8-23 1,598 8-24 1,325 8-29 900 8-30 569 Total 3184 3185 3186 3187 3188 760 1,038 455 734 273 $10,924 737 8-10 3180 8-15 3181 8-18 3182$1,508