Question

Problem 7-3A On July 31, 2017, Ivanhoe Company had a cash balance per books of $5.255.00. The statement from Dakota State Bank on that date showed a balance of $7,805 80. A comparison of the bank statement with the Cash account revealed the following facts 1. The bank service charge for July was $22.00 2. The bank collected $1,635.00 for Ivanhoe Company through electronic funds transfer 3. The July 31 receipts of $1,311.30 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 und to L. Taylor, a creditor, for $314.00 at dewed the bank in jury was incorrectly entered in the cash payments journal on July 10 for $347.00 Checks outstanding on July 31 totaled $1.966.10 On July 31, the bank statement showed an NSF charge of $590.00 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.) IVANHOE COMPANY Bank Reconciliation

Answer 1

TVANHOE Bank Reaonci Liation Comp ANY July 31, 201 Cash Balance Per banR tatement 3,805. 80 1,311 30 $9,117.10 Add: Seposiz in transit $ 1,966.10 Les Ouctstanding cChecns Adjusted cath balance per bank 7,151.00 $6,255.00 ,635.00 $3,890.00 Cash balance per books Adld: Ele cthonic funds tranfer received Les Bank beruice chaige 6৭০ ০০ NSp check Error in recordling check No. 2480 $739.00 Adjusted cash balance fer books न,।S। ०० Cafculation: Error in reeording check No. 2480 374-34 $27

creait Date Debit Account Tles and Explanation July 31 1,635 Cash 1,635 Accounts Receivable To Aecosd electsonie funds tranufer reeeiued by bank) 690 July 31 Accounts Receivable $690 carh LTo Recond NSF Check) Accounts Payable July 31 Cam correet error in recording To check) Bank Charges Expense July 3) Cash (To record bank Bervice charge) Catculation July 31, Accounts Payable $374 347 27