Problem 7-3A (Part Level Submission) On July 31, 2017, Sunland Company had a cas

Question

Problem 7-3A (Part Level Submission) On July 31, 2017, Sunland Company had a cash balance per books of $6,275.00. The statement from Dakota State Bank on that date showed a balance of $7,825.80. A comparison of the bank statement with the Cash account revealed the following facts The bnk ct sr.ess o for suniand Company through electronic funds tranaten 2. The bank collected $1,655.00 for Sunland Company through electronic funds transfer. 3. The July 31 receipts of $1,336.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to L. Taylor, a creditor, for $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348.00. 5. Checks outstanding on July 31 totaled $1,995.10. 6. On July 31, the bank statement showed an NSF charge of $710.00 for a check recelved by the company from W. Krueger, a customer, on account. Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) SUNLAND COMPANY Bank Reconciliation

Explanation / Answer

Bank reconciliation Statement Particulars Amount Cash balance per books              6,275.00 Service Charges                  (17.00) Collection by bank from customer not recorded in cash book through EFT              1,655.00 Deposit not coming in bank book            (1,336.30) Incorrect recording in cash book= 384 - 348                  (36.00) Outstanding cheques              1,995.10 NSF Check from Customer               (710.00) Cash balance per bank              7,825.80

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