Question

The following information pertains to Sunland Company. 1. Cash balance per books, August 31, $7,424. 2. Cash balance per bank, August 31, $7,388. 3. Outstanding checks, August 31, $695. 4. August bank service charge not recorded by the depositor $47. 5. Deposits in transit, August 31, $3,060. In addition, $2,376 collected for Sunland Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Sunland Company.

Answer 1

Date Credit Sunland Company Bank Reconciliation Cash balance per bank statement Add: Deposits in transit Debit $ 2,376 31-Aug Journal Entries Account Title and Explanation Cash Accounts receivable (To record electronic funds transfer received by bank) $ $ $ $ $ $ 2,376 7,388 3,060 10,448 695 9,753 Less: Outstanding checks Adjusted cash balance per bank 31-Aug $ 47 Miscellaneous expense Cash (To record bank service charge) $ 4,350 Cash balance per books Add: Collection of electronic fund transfer $ $ $ 7,424 2,376 9,800 47 9,753 Less: Service charges Adjusted cash balance per books $