Im not sure if what i have is correct. On July 31, 2014, Redeker Company had a c
ID: 2449236 • Letter: I
Question
Im not sure if what i have is correct.
On July 31, 2014, Redeker Company had a cash balance per books of $6,435. The statement from Nashota State Bank on that date showed a balance of $7,985.80. A comparison of the bank statement with the Cash revealed the following facts. The bank service charge for July was $21. The bank collected a note receivable of $1,697 for Redeker Company on July 15, plus $34 of interest. The bank made a $14 charge for the collection. Redeker has not accrued any interest on the note. The July 31 receipts of $1,394.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. Company check No. 2480 issued to T. Laird, a creditor, for $364.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $346.00. Checks outstanding on July 31 totaled $2,039.10. 6. On July 31, the bank statement showed an NSF charge of $772 for a check received by the company from K. Wagner, a customer, on account. Prepare the bank reconciliation as of July 31. Prepare the necessary adjusting entries at July 31.Explanation / Answer
Answer:
Bank Reconciliation July 31,2014 in$ Cash balance as per books 6435 Add: Notes collected net of charges 1717 ($1697+34-14) 8152 Less: Bank service charges 21 Adjusted cash balance as per books 8131 Adjusted cash balance as per books 8131 Add: Checks outstanding 2039.1 10170.1 Less: Deposit in vault on 31st july 1394.3 NSF charges 772 Error in poting 18 ($364-346) 2184.3 Balance as per bank statement 7985.8