Question

Exercise 8-11 a-b (Video) The following information pertains to Waterway Video Company. 1. Cash balance per bank, July 31, $8,243. 2. July bank service charge not recorded by the depositor $36. 3. Cash balance per books, July 31, $8,264. 4. Deposits in transit, July 31, $1,990. 5. Bank collected $1,390 note for Waterway in July, plus interest $44, less fee $28. The collection has not been recorded by Waterway, and no interest has been accrued. 6. Outstanding checks, July 31, $599. Prepare a bank reconciliation at July 31. (List items that increase cash balance first.) WATERWAY VIDEO COMPANY Bank Reconciliation V Journalize the adjusting entries at July 31 on the books of Waterway Video Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit July 31 (To record the collection of the note.) July 31 (To record the bank service charge.) Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer
	Bank reconciliation
	Cash balance per bank, July 31,	$ 8,243
	Deposit in transit	$ 1,990
		$10,233
	Outstanding checks	-$     599
	Adjusted cash balance	$ 9,634
	Cash balance per books, July 31	$ 8,264
	Collection of note receivable (1390+44-28)	$ 1,406
		$ 9,670
	Bank service charge	-$       36
	Adjusted cash balance	$ 9,634
Journal Entries
Date	Particulars	Debit	Credit
Jul'31	Cash Dr	$ 1,406
	Expenses for collection Dr	$       28
	To Note receivables		$ 1,390
	To Interest revenue		$      44
	(To record note collection by bank)
Jul'31	Miscellaneous Expenses Dr	$       36
	To Cash		$      36
	(To record bank service charges)
Please like