Question

Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3 [The following information applies to the questions displayed below.) The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $25,648 debit balance, but its July bank statement shows a $27.213 cash balance. b. Check No. 3031 for $1,220 and Check No. 3040 for $602 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $386 and Check No. 3069 for $1,988, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. d. The July bank statement shows the bank collected $9,500 cash on a noninterest-bearing note for Branch, deducted a $48 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. 1 The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received 9. Branch's July 31 daily cash receipts of $10,652 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Problem 8-4A Part 1 Required: 1. Prepare the bank reconciliation for this company as of July 31, 2017 BRANCH COMPANY Bank Reconciliation July 31, 2017 Bock balance

Answer 1

3olution : Bonk Add: Statements Balonce Cash receipt not recorded in Bank statement Branch Company Bank Reconciliation - July 31, 2017 Amount (32_Amount: Amount (3) Amount 27,213 Book Balonce 25,643 Add: Cash collected on a Note by bank 10,652 directly not recorded in book 9500 37,865 35,148 less: Amount erroneously recorded in I (1220) book, now rechod 1230 -1240) (10) (1985) Collection expenses, not recorded (48) (386) (3594) NSF chorges, not recorded (805) Bont service choges, not recorded (14) (877) | 34,271 Adjusted Book Balance 134, 271 Less: Cheques not the cancelled yet: Ch. no. 3031 Chino 3069 Ch. no. 3065 Adjusted bank balance Scanned with CamScanner