Question

Problem 7-5A Rodriguez Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 July recelpts July credits July disbursements July debits Balance, July 31 $17,708 81,508 77,258 $21,958 $15,908 83,578 74 ,8б4 Analysis of the bank data reveals that the credits consist of $78,991 of July deposits and a credit memorandum of $4,587 for the collection of a $4,508 note plus interest revenue of $79. The July debits per bank consist of checks cleared $74,799 and a debit memorandum of $65 for printing additional company checks. You also discover the following errors involving July checks: (1) A check for $390.00 to a creditor on account that cleared the bank in July was journalized and posted as $930.00. (2) A salary check to an employee for $455 was recorded by the bank for $355 The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,108 and outstanding checks of $6,308.

Answer 1

	Bank Reconciliation
	Balance per bank statement		24622
	Add: Deposit in transit (81508+8108-78991)		10625
			35247
	Less:
	Outstanding checks (6308+76618-74799)	8127
	Error in employee check (455-355)	100	8227
	Adjusted cash balance per bank statement		27020
	Balance per ledger		21958
	Add:
	Error in check (930-390)	540
	Notes receivable	4508
	Interest collected	79	5127
			27085
	Less:
	Printing charges of check		65
	Adjusted cash balance per ledger		27020
	JOURNAL ENTRIES:
1)	Cash	4587
	Interest income		79
	Notes receivable		4508
	(To record collection of note receivable)
2)	Cash	540
	Accounts payable		540
	(To record error on check)
3)	Bank service charges	65
	Cash		65