Question

S Kimmel, Financial Accounting, se ele Stem Announcements Problem 7-3A On July 31, 2017, Cullumber Company had a cash balance per books of $6,305.00. The statement from Dakota State Bank on that date showed a balance of $7.855.80. A CO the Cash account revealed the following facts. 1. The bank service charge for July was $16.00 2. The bank collected $1.595.00 for Cullumber Company through electronic funds transfer 3. The Jully aire 1.367.30 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 Issuto L. Taylor, a creditor, for $394.00 that deared the bank in July was incorrectly entered in the cash payments Journal on July 10 for $349.00 5. Checks outstanding on July 31 totaled $2,034.10. 6. On July 31, the bank statement showed an NSF charge of $740.00 for a check received by the company from W. Krueger, a customer, on account. Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) CULLUMBER COMPANY Bank Reconciliation July 31, 2017 Cash balance per bank statement 7855.8 Add Deposits in transit 1367.3 9223.1 Less , Outstanding checks 2034.1 7189 Adjusted cash balance per bank Cash balance per books Add Electronic funds transfer received Bank service charge

Answer 1

Credit Journal Entries Date Account Title and Explanation 31-Jul Cash Accounts Receivable (To record electronic fund transfer received by bank) Debit 1,685 $ $ 1,685 $ 740 31-Jul Accounts Receivable Cash (To record NSF check) $ 740 $ 45 ($ 394 - $ 349) 31-Jul Accounts Payable Cash (To correct error in recording check) 45 16 31-Jul Miscellaneous Expense Cash (To record bank service charge) 16