The cash data of Dunlap Automotive for July 2010 follow: Dunlap received the following bank statement on
Question:
The cash data of Dunlap Automotive for July 2010 follow:
Dunlap received the following bank statement on July 31, 2010:
Additional data for the bank reconciliation include the following:
a. The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance payment.
b. The unauthorized signature check was received from a customer.
c. The correct amount of check number 3115, a payment on account, is $1,360. (Dunlap’s accountant mistakenly recorded the check for $1,630.)
Requirements
1. Prepare the Dunlap Automotive bank reconciliation at July 31, 2010.
2. Describe how a bank account and the bank reconciliation help the general manager control Dunlap’scash.
Step by Step Answer:
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas