Question

On July 31, 2022, Sunland Company had a cash balance per books of $6,275.00. The statement from Dakota State Bank on that date showed a balance of $7,825.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $17.00.
2.		The bank collected $1,655.00 from a customer for Sunland Company through electronic funds transfer.
3.		The July 31 receipts of $1,336.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.		Company check No. 2480 issued to L. Taylor, a creditor, for $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348.00.
5.		Checks outstanding on July 31 totaled $1,995.10.
6.		On July 31, the bank statement showed an NSF charge of $710.00 for a check received by the company from W. Krueger, a customer, on account.

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.)

SUNLAND COMPANY Bank Reconciliation choose the accounting period                                                                      For the Year Ended July 31, 2022July 31, 2022For the Month Ended July 31, 2022
select an opening name for section one                                                                      Deposits in transitElectronic funds transfer receivedBank service chargeCash balance per bank statementOutstanding checksError in recording check No. 2480NSF checkAdjusted cash balance per bank					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Error in recording check No. 2480Cash balance per bank statementAdjusted cash balance per bankBank service chargeDeposits in transitOutstanding checksElectronic funds transfer receivedNSF check				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      NSF checkError in recording check No. 2480Deposits in transitCash balance per bank statementElectronic funds transfer receivedOutstanding checksBank service chargeAdjusted cash balance per bank				enter a dollar amount
select a closing name for section one                                                                      Outstanding checksCash balance per bank statementBank service chargeNSF checkElectronic funds transfer receivedDeposits in transitAdjusted cash balance per bankError in recording check No. 2480					$enter a total amount for the first section
select an opening name for section two                                                                      Deposits in transitBank service chargeError in recording check No. 2480NSF checkAdjusted cash balance per booksCash balance per booksElectronic funds transfer receivedOutstanding checks					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Cash balance per booksOutstanding checksError in recording check No. 2480Deposits in transitAdjusted cash balance per booksElectronic funds transfer receivedBank service chargeNSF check				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Adjusted cash balance per booksElectronic funds transfer receivedNSF checkError in recording check No. 2480Deposits in transitCash balance per booksOutstanding checksBank service charge		$enter a dollar amount
	select a reconciling item                                                                      Deposits in transitError in recording check No. 2480Adjusted cash balance per booksOutstanding checksNSF checkElectronic funds transfer receivedBank service chargeCash balance per books		enter a dollar amount
	select a reconciling item                                                                      NSF checkBank service chargeElectronic funds transfer receivedCash balance per booksError in recording check No. 2480Deposits in transitAdjusted cash balance per booksOutstanding checks		enter a dollar amount
					enter a subtotal of the three previous amounts
select a closing name for section two                                                                      Deposits in transitAdjusted cash balance per booksElectronic funds transfer receivedOutstanding checksError in recording check No. 2480NSF checkCash balance per booksBank service charge					$enter a total amount for the second section

Answer 1

Bank Reconciliation
July 31, 2022
Cash balance per bank statement		7825.80
Add: Deposits in transit		1336.30
		9162.10
Less: Outstanding checks		1995.10
Adjusted cash balance per bank		7167.00
Cash balance per books		6275.00
Add: Electronic funds transfer received		1655.00
		7930.00
Less:
Bank service charge	17.00
NSF check	710.00
Error in recording check No. 2480	36.00
		763.00
Adjusted cash balance per books		7167.00