Question

 On July 31, 2022, Pharoah Company had a cash balance per books of $6,320.00. The statement from Dakota State Bank on that date showed a balance of $7.870.80.A comparison of the bank statement with the Cash account revealed the following facts.

 1. The bank service charge for July was $21.00.

 2. The bank collected $1,700.00 from a customer for Pharoah Company through electronic funds transfer.

 3. The July 31 receipts of $1,377.30 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 $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00.

 5. Checks outstanding on July 31 totaled $2,031.10.

 6. On July 31, the bank statement showed an NSF charge of $755.00 for a check received by the company from W. Krueger, a customer, on account.

Answer 1

Bank reconciliation
July 31,2022
Cash balance per Bank statement		7870.80
Add: Deposits in transit		1377.30
		9248.10
Less: Outstanding checks		2031.10
Adjusted cash balance per bank		7217.00
Cash balance per books		6320.00
Add: Electronic funds transfer received		1700.00
		8020.00
Less:
Bank service charge charge	21.00
Error in recording check	27.00
NSF check	755.00
		803.00
Adjusted Cash balance per books		7217.00