Question

E7-8 The following information pertains to Joyce Compa 1. Cash balance per bank, July 31, $7,328. 2. July bank service charge not recorded by the depositor $38. 3. Cash balance per books, July 31, $7,364. 4. Deposits in transit, July 31, $2,700. 5. Note for $2,000 collected for Joyce Company in July by the bank, plus interest $36 less fee $20. The collection has not been recorded by Joyce Company, and no inter been accrued. est has 6. Outstanding checks, July 31, $686.

Answer 1

(a):

Cash balance as per books	7,364.00
Add: Notes collected by bank	2,000.00
Interest earned	36.00
	9,400.00
less: July bank service charge	38.00
less: fee	20.00
Adjusted cash balance	9,342.00
Cash balance as per bank	7,328.00
Add: Deposit in transit	2,700.00
	10,028.00
less: outstanding checks	686.00
Adjusted cash balance	9,342.00

(b): Adjusting entries on the books of Joyce Company:

No.	Particulars	Debit	Credit
1	Cash	36.00
	Interest revenue		36.00
2	Cash	2,000.00
	Notes receivable		2,000.00
3	Bank service fee	38.00
	Cash		38.00
4	Collection fee	20.00
	Cash		20.00