Question

Exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5) 

Spielberg Company's general ledger shows a checking account balance of $22,910 on July 31, 2021. The July cash receipts of $1,825, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $49. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,400. The bank statement shows a balance of $22.436 on July 31.

Required:

 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) 

 2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 

Answer 1

1
Bank Reconciliation
July 31,2021
Bank's Cash balance		Company's Cash balance
Per bank statement	22436	Per general ledger	22910
Deposits outstanding	1825	Service Fees	-49
Checks outstanding	-1400
Bank balance per reconciliation	22861	Company balance per reconciliation	22861

2
1
General Journal	Debit	Credit
No journal entry required
2
General Journal	Debit	Credit
Service fees expense	49
Cash		49