Question

Problem 8-04A a-b (Part Level Submission) On July 31, 2020, Sheridan Company had a cash balance per books of $6,086.30. The statement from Dakota State Bank on that date showed a balance of $7,718.10. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $25. 2. The bank collected $1,700 for Keeds Company through electronic funds transfer 3. The July 31 receipts of $1,286.50 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 $394 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $349 5. Checks outstanding on July 31 totaled $1,867.30. 6. On July 31, the bank statement showed an NSF charge of $579 for a check received by the company from W. Krueger, a customer, on account (a) Prepare the bank reconciliation as of July 31. (List items that increase cash balance first. Round answers to 2 decimal places, ed. 1.245.25) SHERIDAN COMPANY Bank Reconciliation R 4 - 29 PM do 10/28/2019

Answer 1

SHERIDAN COMPANY Bank Reconciliation JULY 31 Cash balance per bank Add: Deposit in transit $ $ $ $ $ 7,718.10 1,286.50 9,004.60 1,867.30 7,137.30 Less: Checks outstanding Adjusted Bank Balance $ $ $ 6,086.30 1,700.00 7,786.30 Cash balance per books Add: EFT collected Note collected including interest Less: Service charges Error in recording a check NSF charge $ $ $ 25.00 45.00 579.00 ($ 394 - $ 349) $ $ 649.00 7,137.30 Adjusted CAsh Balance