Question

The following information pertains to Blossom Company.

1.		Cash balance per books, August 31, $7,374.
2.		Cash balance per bank, August 31, $7,338.
3.		Outstanding checks, August 31, $710.
4.		August bank service charge not recorded by the depositor $62.
5.		Deposits in transit, August 31, $3,810.

In addition, $3,126 collected for Blossom Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Blossom Company.

Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.) BLOSSOM COMPANY Bank Reconciliation For the Year Ended August 31, 2022 4 Cash balance per bank statement 7,374 Add : Less

Answer 1

a)		Blossom Company
		July 31,2017
	Cash balance per bank statement					7,338
	Add	Deposit in transit				3,810
						11,148
	less	outstanding checks				710
	Adjusted cash balance per bank					10,438
	Cash balance per books					7,374
	Add	Electronic funds transfer received				3,126
						10,500
	less	Bank service charge				62
	Adjusted cash balance per books					10,438
b)	Date	Account titles & Explanations				Debit	Credit
	31-Jul	Cash				3,126
		Accounts receivable					3,126
	31-Jul	Bank service charge				62
		cash					62