Question

Spielberg Company's general ledger shows a checking account balance of $22,810 on July 31, 2021. The July cash receipts of $1,725, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $39. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,300. The bank statement shows a balance of $22,346 on July 31.

Required:

1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Bank Reconciliation

Bank	Books
Balance, July 31	22,346	Balance, July 31	22,810
Add:		Add:
Deposit in transit	1,725
Less:		Less:
Outstanding checks	- 1,300	Bank service fees	- 39
Adjusted bank balance	22,771	Adjusted book balance	22,771

2.

Journal

1	No journal entry required
2	Bank service fees	39
	Cash		39

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