Question

Rodriguez Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 $17,770 $15,970 July receipts 81,570 July credits 83,649 July disbursements 77,320 July debits 74,926 Balance, July 31 $22,020 $24,693 Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $4,649 for the collection of a $4,570 note plus interest revenue of $79. The July debits per bank consist of checks cleared $74,861 and a debit memorandum of $65 for printing additional company checks. You also discover the following errors involving July checks. (1) A check for $470 to a creditor on account that cleared the bank in July was journalized and posted as $740. (2) A salary check to an employee for $455 was recorded by the bank for $355. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,170 and outstanding checks of $6,370. Partially correct answer. Your answer is partially correct. Try again. Prepare a bank reconciliation at July 31, 2017. (List items that increase cash balance first. Reconcile cash balance per bank first.) Journalize the adjusting entries to be made by Rodriguez Company. Assume that interest on the note has not been accrued. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Alignment Number 017 1 Journal entries to be made by Rodriguez Company 2 31-Jul Cash... Dr 4,649 To Accounts receivable To Interest receivable (To record collection of note receivable and interest receivable) 4,570 9 31-Jul Miscellaneous expense... Dr 10 65 To cash 65 To record printing charges of additional checks) 12 13 14 31-Jul Cash...Dr 15 16 17 18 19 20 270 To Creditor (To record error in recording of check to creditor) 270