Question

Problem 8-04A a-b (Part Level Submission) On July 31, 2020, Sheridan Company had a cash balance per books of $6,086.30. The statement from Dakota State Bank on that date showed a balance of $7,718.10. A comparison of the bank statement with the Cash account revealed the following facts. 1 1. The bank service charge for July was $25 2. The bank collected $1,700 for Keeds Company through electronic funds transfer 3. The July 31 receipts of $1,286.50 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. Company check No. 2480 issued to L. Taylor, a creditor, for $394 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $349 5. Checks outstanding on July 31 totaled $1,867.30 6. On July 31, the bank statement showed an NSF charge of $579 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 cash balance first. Round answers to 2 decimal places, e.g. 1,245.25) SHERIDAN COMPANY Bank Reconciliation

Answer 1

Bank Reconciliation

as of July 31

Unadjusted balance	7718.10
Add: Deposit in transit	1286.50
Add: Error in Check	45
	9049.60
Less: Outstanding Check	-1867.30
Adjusted balance	7182.30
Unadjusted balance per book	6086.30
Add: electronic fund transfer	1700
	7786.30
Less: NSF Check	-579
Less: Bank Charges	-25
Adjusted balance	7182.30