Question

newc FLUTUR DI LUAR UR TIRULIW TR TU RIURI statement cash balance as of July 31 On July 31, the company's Cash account has a $24,866 debit balance, but its Julybank statement shows a $27.224 cash balance. Check No 3031 for SUSI, Check No. 3065 for $53t and Check No 3059 for $2.278 are outstanding checks as of July 31 Check No. 3056 for rent expense was correctly written and drawn for $1260 but was erroneously entered in the accounting records as $1.250. The July bank statement shows the bank collected $9.500 cash on a note for Branch Branch had not recorded this event before receiving the statement The bank statement shows an $805 NSF check the check had been received from a customer Evan Shaw Branch has not yet recorded this check as NSF. The jury statement shows a bank service charge. It has not yet been recorded in miscelaneous expenses because no previous notification had been received Q. Branch uy 31 any cash receipts of $10,632 were placed in the bank's night depository on that date but do not appear on the 31 bank statement Problem 6-4A Part 2 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of July 31. Of no entry is required for a transaction/event, select "No journal entry required in the first account red.) View transaction list Journal entry worksheet Record the adjusting entry required, if any, related to the NSF check Note: Enter debits before credits Recorder View general Journal Clear andry

Answer 1

To understand the journal entries first let us prepare Bank reconciliation statement :

Cash balance as per cash book	24,866
Add : Collection of notes	9500
Less : error in recording	(10)
NSF checks	(805)
Service charges	(14)
Adjusted cash balance	33,537
Cash balance as per bank statement	27,224
Add : deposits in transit	10,632
Less : outstanding checks	(1510)
	(531)
	(2278)
Adjusted cash balance	33,537

Journal entries :

Date	Particular	Debit	Credit
July
31	Cash A/c	9,500
	Notes receivable A/c		9,500
31	Rent expense A/c	10
	Cash A/c		10
31	Accounts receivable A/c	805
	Cash A/c		805
31	Miscellaneous expenses	14
	Cash A/c		14

Thus the cash balance will now be $ 33,537

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