Problem 6-4A Preparing a bank reconciliation and recording adjustments LO P3
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31.
a. On July 31, the company's Cash account has a $25,866 debit balance, but its July bank statement shows a $28,091 cash balance.
b. Check No. 3031 for $1.480 and Check No. 3040 for $732 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $516 and Check No. 3069 for $2.248, both written in July, are not among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1.240.
d. The July bank statement shows the bank collected $8.000 cash on a noninterest-bearing note for Branch, deducted a $40 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. 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 $12 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
g. Branch's July 31 daily cash receipts of $9,152 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.
1. Prepare the bank reconciliation for this company as of July 31.
2. Prepare the journal entries necessary to bring the company's book balance of cash Into conformity with the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
BRANCH COMPANY | |||||
Bank Reconciliation | |||||
July 31 | |||||
Bank statement balance | 28091 | Book balance | 25866 | ||
Add: | Add: | ||||
Deposit of July 31 | 9152 | Proceeds of note less collection charge | 7960 | ||
9152 | 7960 | ||||
37243 | 33826 | ||||
Deduct: | Deduct: | ||||
Check No. 3031 | 1480 | NSF check including fee | 805 | ||
Check No. 3065 | 516 | Service charge | 12 | ||
Check No. 3069 | 2248 | Error (Check 3056) | 10 | ||
4244 | 827 | ||||
Adjusted bank balance | 32999 | Adjusted book balance | 32999 |
2 | |||
Transaction | General Journal | Debit | Credit |
a. | No journal entry required | ||
b. | No journal entry required | ||
c. | Rent expense | 10 | |
Cash | 10 | ||
d. | Cash | 7,960 | |
Collection expense | 40 | ||
Notes receivable | 8,000 | ||
e. | Accounts receivable—E. Shaw | 805 | |
Cash | 805 | ||
f. | Miscellaneous expenses | 12 | |
Cash | 12 | ||
g. | No journal entry required |
Problem 6-4A Preparing a bank reconciliation and recording adjustments LO P3
Problem 8-4A 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 Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,648 debit balance, but its July bank statement shows a $27.213 cash balance. b. Check No. 3031 for $1,220 and Check No. 3040 for $602 were...
Required information Problem 8-4A 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 Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,644 debit balance, but its July bank statement shows a $28,407 cash balance. b. Check No. 3031 for $1,690 and Check No. 3040 for...
Problem 8-4A 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 Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,862 debit balance, but its July bank statement shows a $28,128 cash balance. b. Check No. 3031 for $1,490 and Check No. 3040 for $737 were...
Required information Problem 8-4A 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 Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,648 debit balance, but its July bank statement shows a $27,213 cash balance. b. Check No. 3031 for $1,220 and Check No. 3040 for...
Required information Problem 8-4A 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 Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,868 debit balance, but its July bank statement shows a $28,161 cash balance b. Check No. 3031 for $1,510 and Check No. 3040 for...
0 Required information 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 Company's book balance of cash with its bank statement cash balance as of July 31 a. On July 31, the company's Cash account has a $24,960 debit balance, but its July bank statement shows a $26.923 cash balance b. Check No. 3031 for $1,350, Check No. 3065 for $451,...
Required information 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 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 $24,912 debit balance, but its July bank statement shows a $26,925 cash balance. Check No. 3031 for $1,370, Check No. 3065 for $461, and Check...
Required information 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 Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,628 debit balance, but its July bank statement shows a $28,688 cash balance. b. Check No. 3031 for $1,790, Check No. 3065 for $671, and...
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 Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,722 debit balance, but its July bank statement shows a $27,510 cash balance. b. Check No. 3031 for $1,280, Check No. 3065 for $416, and Check No....
Problem 8-4A Preparing a bank reconciliation and recording adjustments@p3 The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance. b. Check No. 3031 for $1,482, Check No. 3065 for $382, and Check No. 3069 for $2,281 are outstanding checks as of July 31. c....