Problem 4B: Bank Reconciliation (5 points) The bank statement for Pooches Paradi

Question

Problem 4B: Bank Reconciliation (5 points) The bank statement for Pooches Paradise Inc, indicated a balance of $13,655 on 31t The cash balance per the books was only $11,940 on the same date July charged Pooches Paradise Inc. $60 in service fees and returned an $750. Deposits in transit of $4,750 were not recorded on the bank statements outstanding checks for $3,025 had not been presented to the bank for payment. The NSF check for and bank collected a note receivable of $4,000 for Pooches Paradise Inc. In reviewing the deposits the bank mistakenly put $250 of another company's receipts in Poochs Paradise's account. Instructions: Prepare a bank reconciliation for Pooches Paradise Inc. as of July 31 Give the journal entry to adjust the books for Pooches Paradise Inc. Pooches Paradise Inc. Bank Reconciliation July 31, 20xx BOOK BANK Book balance Bank balance Seausc fees nrck 4+ Bont Fras Adjusted Book Adjusted Bank

Explanation / Answer

Bank Reconciliation                     BANK               BOOK Bank Balance 13,655       Book Balance 11,940 Add:Deposits in transit 4,750 less: Service fee 60 less:oustanding cheques 3,025 less:NSF 750 less:Bank error 250 Add:Note collected 4,000 Adjusted Bank 15,130 Adjusted Book 15,130 Adjusting Entries Account titles & explanations Debit Credit Service fee 60 Cash 60 Accounts receivable 750 cash 750 Cash 4,000 Note receivable 4,000

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