Problem 7-5A BLOSSOM LTD. Bank Reconciliation July 31 (b) Prepare any journal en
ID: 2572944 • Letter: P
Question
Problem 7-5A
BLOSSOM LTD.
Bank Reconciliation
July 31
(b) Prepare any journal entries required from the reconciliation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Problem 7-5A
On July 31, Blossom Ltd. had a cash balance of $12,684 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $21,525. A comparison of the bank statement with the Cash account revealed the following: 1. The bank statement included service charges and credit card fees of $118. 2. The bank statement included electronic collections from customers on account totalling $5,273. Blossom had not recorded the EFT. 3. A deposit of $3,082 made by another company was incorrectly added to Blossom’s account by the Caisse Populaire. 4. Salaries of $4,162 were paid electronically during the month. The company has already recorded these. 5. Cheques outstanding on June 30 totalled $2,765. Of these, $2,161 worth cleared the bank in July. All cheques written in July cleared the bank in July.Explanation / Answer
PARTICULARS
MINUS ITEMS
PLUS ITEMS
Balance as per pass book of blossom holdings ltd.(bank statement)
21525
1. bank charges
118
2.electronic transfer not included
5273
3.Amount wrongly credited in blossom account
3082
4.salaries debited electronically already debited by the company
4162
-
5.Cheque issued but not cleared in july (2765-2161)
604
-
balance as per cash book of blossom holding ltd.
-
12648
PARTICULARS
PLUS ITEMS
MINUS ITEMS
Balance as per cashbook of blossom holdings ltd.
PARTICULARS
MINUS ITEMS
PLUS ITEMS
Balance as per pass book of blossom holdings ltd.(bank statement)
21525
1. bank charges
118
2.electronic transfer not included
5273
3.Amount wrongly credited in blossom account
3082
4.salaries debited electronically already debited by the company
4162
-
5.Cheque issued but not cleared in july (2765-2161)
604
-
balance as per cash book of blossom holding ltd.
-
12648