Question

PS 5A Rodrid selected data from Prepare a bank reconciliation and adjusting entries. (L03) Rodriguez Company maintains a checking account at the Imura Bank. At July 31. data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 $17.600 $15,800 July receipts 81,400 July credits 83,470 July disbursements 77,150 July debits 74,756 Balance, July 31 $21,850 $24,514 Jusis of the bank data reveals that the credits consist of $79,000 of July deposits and a dit memorandum of $4,470 for the collection of a $4,400 note plus interest revenue of 70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks. You also discover the following errors involving July checks. (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,000 and outstanding checks of $6,200. Instructions (a) Prepare a bank reconciliation at July 31, 2017. (b) Journalize the adjusting entries to be made by Rodriguez Company. Assume that inter est on the note has not been accrued. (a) Adjusted balance per books $26,354

Answer 1

		Rodriguez Company
		Bank Reconciliation
		July 31,2017
Cash balance per statement						24,514
Add:	Deposit in transit					10,400
						34,914
less:	outstanding checks				8,460
	Bank Error				100
						8,560
Adjusted Cash balance per bank						26,354
Cash balance per books						21,850
Add:
	Collection of note receivable by bank				4470
	Book Error				90
						4560
						26,410
less:	Check printing charge					56
Adjusted cash balance per books						26,354
Adjusting Entries
No.	Account titles & Explantions				Debit	Credit
31-Jul	Cash				4,470
	interest revenue					70
	Note receivable					4,400
31-Jul	Cash				90
	Accounts payable					90
31-Jul	Printing charges				56
	cash					56

Working notes:
1)	July reciepts per books				81,400
	july receipts per bank			79,000
	less:Deposits in transit,june 30			-8000	71,000
	Deposit in transit ,July 31				10,400
2)	Disburesment per books						77150
	less:book error						-90
	total disbursements to be accounted for						77060
	checks clearing bank in July					74,700
	Add:Bank error				100
	less:june 30 outstanding checks				6200	6100	68,600
	outstanding checks ,uly 31						8,460