Question

The following information is for Blossom Video Company:

1.		Cash balance per bank, July 31, $7,000.
2.		July bank service charge not recorded by the depositor, $20.
3.		Cash balance per books, July 31, $7,000.
4.		Deposits in transit, July 31, $1,000.
5.		Bank collected $500 note for Blossom in July, plus interest $32, less fee $12. The collection has not been recorded by Blossom, and no interest has been accrued.
6.		Outstanding cheques, July 31, $500. Weygandt, Accounting Principles, Seventh Canadian Edition, Volume 1 Help System Announcements се Assignment Gradebook ORION Downloadable eTextbook ment Question 2 The following information is for Blossom Video Company: 1. 2. 3. Cash balance per bank, July 31, $7,000. July bank service charge not recorded by the depositor, $20. Cash balance per books, July 31, $7,000. Deposits in transit, July 31, $1,000. Bank collected $500 note for Blossom in July, plus interest $32, less fee $12. The collection has not E Outstanding cheques, July 31, $500. 4. 5. 6. Your answer is partially correct. Try again. shirst Prepare a bank reconciliation at July 31. (List items that increase balance as per bank & books First BLOSSOM VIDEO COMPANY Bank Reconciliation July 31 7000 Cash balance per bank statement 1000 Add Deposits in transit 8000 500 Less Outstanding cheques 1 licy. 1 © 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. 116694354_819346 Open file 116098075_7379555....jpg Open file 116131142_3214049....jpg Open file Ps ace

1) Prepare bank reconciliation at July 31

2) Journalize the adjusting entries at July 31 on the books of Blossom Video Company.

Answer 1

Answer of Part 1: BLOSSOM VIDEO COMPANY Bank Reconciliation Jul-31 Cash Balance per Bank Statement Add: Deposit in Transit 7000 1000 8000 500 7500 Less: Outstanding Cheques Adjusted Cash Balance per Bank 7000 Cash Balance per Books Add: Collection of Notes Receivable Collection of Interest Revenue 500 32 532 Less: Bank Service Charge Fee for Note Collection 20 12 32 7500 Adjusted Cash Balance per books

Answer of Part 2: Credit Date July 31 Debit 20 20 July 31 Accounts Titles and Explanation Bank Charges Expense Cash (To record the bank service charge) Cash Bank Fees Expense-Note Collection Notes Receivable Interest Income (To record the collection of the note) 520 12 500 32