Question

Extra Credit 1-1 point on Exam 2 E6-22 Bank Reconciliation (Appendix 6.1) LO 6.8 The following information is extracted from the bank statement and the accounting records of Sun Corporation for the month of July, 2019: Cash balance from books, July 31 Cash balance from bank, July 31 NSF check returned by bank with bank statement Note collected by bank on July 31 Interest on preceding note Bank service charge for July Outstanding checks at end of July Deposit in transit at end of July $1,967.35 1,980.20 81.00 190.00 5.50 4.40 150.00 247.25 Required: 1. Prepare a bank reconciliation for Sun on July 31, 2019, 2. Prepare the journal entries necessary to adjust Sun's books on July 31, 2019.

Answer 1

required 1 Bank Reconciliation Statement Balance as per Bank Statement Add: Deposits in transit $ $ 1,980.20 247.25$ 247.25 $ 2,227.45 $ Less: Outstanding checks Adjusted balance as per Bank 150.00 $ 150.00 $ 2,077.45 Balance as per Books $ 1,967.35 Add: Notes collected by bank Interest on note collected $ $ 190.00 5.50 $ 195.50 $ 2,162.85 $ $ 81.00 4.40 $ 85.40 $ 2,077.45 Less: NSF check returned Less: Service charges Adjusted balance as per Books required 2 Journal entries: Accounts title and explanations Jul-31 Cash account Dr. Notes receivable Account Interest revenue Credit $ Debit $ 195.50 $ $ $ 190.00 5.50 Jul-31 Accounts receivable Jul-31 Misc. expense Account Cash $ $ 81.00 4.40 $ 85.40