Question

Tuently as Helly Hendl CUILIUI WedICSSeS as you call ILS JL addressed. P7.3A (LO 3), AP On July 31, 2022. Keeds Company had a cash balance per books of $6,140. The state- ment from Dakota State Bank on that date showed a balance of $7,690.80. 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 $1.520 from a customer for Keeds Company through electronic funds transter. 3. The July 31 receipts of $1,193.30 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 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348. 5. Checks outstanding on July 31 totaled $1,860.10. 6. On July 31, the bank statement showed an NSF charge of $575 for a check received by the company from W. Krueger, a customer, on account. ONLOD

Answer 1

a.

Keeds Company Limited
Bank Reconciliation
July 31,2020
Cash balance according to bank statement		7,690.80
Adjustments:
Deposit in transit	1,193.30
		1,193.30
Outstanding checks	-1,860.10
		-1,860.10
Adjusted balance		$7,024.00
Cash balance according to company's record		6140
Adjustments:
Electronic fund transfer	1,520
		1,520.00
Correction of book error	-36
Bank service charges	-25
NSF Check	-575
		-636
Adjusted balance		$7,024.00

b.

Date	General journal	Debit	Credit
July 31	Cash	$1,520
	Accounts receivable		$1,520
	( To record EFT )
July 31	Accounts receivable - W.Kruger	$575
	Cash		$575
	( To record NSF check)
July 31	Accounts payable	$36
	Cash		$36
	( To record book error)
July 31	Bank service charge	$25
	Cash		$25
	( To record bank service charges)

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