Prepare the journal entries neccessary to bring the company\'s book balance of c
ID: 2453333 • Letter: P
Question
Prepare the journal entries neccessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31 2013 Problem 6-4A Prepare a bank reconciliation and record adjustments LO P3 [The following information applies to the questions displayed below.] The following Information is avallable to reconcile Branch Company's book balance of cash with Its bank statement cash balance as of July 31, 2013. a. On July 31, the company's Cash account has a $24,750 deblt balance, but its July bank statement shows b. Check No. 3031 for $1,320 and Check No. 3040 for $652 were outstanding on the June 30 bank a $26,584 cash balance. reconcillation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $436 and Check No. 3069 for $2.088, 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 was correctly written and drawn for $1.240 but was erroneously entered in the accounting records as $1,230. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $6,500 cash on a non-interest-bearing note for Branch, deducted a $33 collection fee, and credited the remainder to Its account. Branch had not recorded this event before recelving the statement e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had f. Enclosed with the July statement is a $10 debit memorandum for bank services. It has not yet been g. Branch's July 31 daily cash receipts of $7652 were placed in the bank's night depostory on that date, but recelved from a customer, Evan Shaw. Branch has not yet recorded this check as NSF recorded because no previous notification had been recelved. do not appear on the July 31 bank statement. References
Explanation / Answer
Bank Reconciliation July 31.2013 Details Amt Closing Balance as per Bank Statement 26,584.00 Less : Outstanding Cheques 3031 1,320.00 3065 436.00 3069 2,088.00 Total Cheques Outstanding 3,844.00 Add : Accounting error in GL: Chq 3056 10.00 Less: Collection of Cash on Notes 6,500.00 Add : Collection fees not in GL; 33.00 Add : NSF Chq not in GL 795.00 Add: NSF Charge Not in GL; 10.00 Add: Bank service not recorded in GL 10.00 Add: Cash deposit recorded in GL not by bank 7,652.00 Closing balance as per GL 24,750.00 Journal Entries Sr No Account Dr $ Cr$ c Cash 10.00 Rent Expense 10.00 d Cash 6,500 Non Interest bearing Notes receivable 6,500 Cash 33 BAnk Charge (Collection fees) 33 e Accounts receivable 795 Cash 795 Cash 10 Bank Charge (NSF fees) 10 f Cash 10 Bank Charge(Service fee) 10