AE8-11 The following information pertains to Family Video Company. Cash balance

Question

AE8-11 The following information pertains to Family Video Company.   

1. Cash balance per bank, July 31, $10,146.41.
2. July bank service charge not recorded by the depositor $39.12.
3. Cash balance per books, July 31, $10,175.75.
4. Deposits in transit, July 31, $2,095.50.
5. Bank collected $1,257.30 note for Family in July, plus interest $50.29, less fee $27.94. The collection has not been recorded by     Family, and no interest has been accrued.
6. Outstanding checks, July 31, $825.63.

The following information pertains to Family Video Company. Cash balance per bank, July 31, $10,146.41. July bank service charge not recorded by the depositor $39.12. Cash balance per books, July 31, $10,175.75. posits in transit, July 31, $2,095.50. Bank collected $1,257.30 note for Family in July, plus interest $50.29, less fee $27.94. The collection has not been recorded by Family, and no interest has been accrued. tstanding checks, July 31, $825.63. Journalize the adjusting entries at July 31 on the books of Family Video Company. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.Round answers to 2 decimal places, e.g. 10.50.)

Explanation / Answer

Hi,

Please find the answer as follows:

Part A: Bank Reconciliation:

Part B:

July 31

Cash Dr. 1279.65

Miscellaneous Expense Dr. 27.94

Notes Payable Cr. 1257.30

Interest Revenue Cr. 50.29

July 31

Miscellaneous Expense Dr 27.94

Cash Cr. 27.94

Thanks.

Cash Balance per Bank Statement 10146.41 Add Deposit in Transit 2095.50
12241.91 Less Outstanding Checks 825.63
Adjusted Cash Balance per Bank 11416.28

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