Problem 7-3A (Part Level Submission) ly 31, 2017, Crane Company had a cash bala

Question

Problem 7-3A (Part Level Submission) ly 31, 2017, Crane Company had a cash bala oe per books of S6,355.00 The statement from Dakota State Bank on that date showed a balance or 7,905.80 A c panson of the bank staten ent with the Cas aco unt evealed the follo ng t 1· The bank service change for July wes $19.00. 2. The bank collected $1,530.00 for Crare Company through eleztronic funds transfer 3. The July 31 receipts of $1,309.30 were not included in the bank deposits for July. These receipts were deposited by the company in·nght deposit vault on July 31. . Compary check No. 2480 isued toL.Taylor a creditor, for $394.00 thst cleared the benk in July wes incorrectly enitered in the cash payments journal on July 10 for $349.00 5. Checks outstanding on July 31 totaled $1,979.10 6. On Tuly 31, the bank statement shoxed an NSF charge of $685.00 for a check recived by the company from W. Krueger, a oustomer, on account. Prepsre the bank reconciliation as of July 31. (List itenrs that increase balance as per bank & books first.) E COMPANY

Explanation / Answer

Bank Reconciliation report is as prepared below:

Crane Company Bank Reconciliation Aug-31 Particulars Amount ($) Amount ($) Balance as per bank 7,905.80 Add: Deposit in transit 1,309.30 Less: outstanding checks: 1,979.10 Adjusted cash balance per bank 7,236.00 Cash balance as per books 6,355.00 Add: Cash collected by bank 1,630.00 Less: Bank Service Charge 19.00 Check to L. talyor recorded with wrong amount 45.00 NSF Charge 685.00 749.00 Adjusted cash balance as per books 7,236.00

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