Question

Kimmel, Financial Accounting, 8e Hela I Svstem Announcements CALCULATOR Problem 7-3A On July 31, 2017, Cullumber Company had a cash balance per books of $6,305.00. The statement from Dakota State Bank on that date showed a balance of $7,855.80. A comparison the Cash account revealed the following facts. 1. The bank service charge for July was $16.00. 2. The bank collected $1,685.00 for Cullumber Company through electronic funds transfer. 3. The July 31 receipts of $1,367.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31 4. Compamy check No. 2480 issued to L. Taylor, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $349.00. 5. Checks outstanding on July 31 totaled $2,034.10. 6. On July 31, the bank statement showed an NSF charge of $740.00 for a check received by the company from W. Krueger, a customer, on account. Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) CULLUMBER COMPANY Bank Reconciliation Studry LG

Answer 1

CULLUMBER COMPANY Bank Reconciliation July 31 Bank Statement balance Add: Deposit in transit $ $ $ $ $ 7,855.80 1,367.30 9,223.10 2,034.10 7,189.00 Less: Checks outstanding Adjusted Bank Balance Cash account balance Add: EFT Less: Service charges NSF charge Error in recording a check 2480 Adjusted Book Balance $ $ $ $ $ $ $ 6,305.00 1,685.00 7,990.00 16.00 740.00 45.00 7,189.00