Exercise 7-24 June 30 Bank Reconciliation $42,000 9,240 (12,000 ) $39,240 Month
ID: 2404830 • Letter: E
Question
Exercise 7-24
June 30 Bank Reconciliation
$42,000
9,240
(12,000
)
$39,240
Month of July Results
Per Bank
Per Books
METLOCK LANSBURY COMPANY
Bank Reconciliation
July 31
SHOW LIST OF ACCOUNTS
Account Titles and Explanation
Debit
Credit
Open Show Work
Exercise 7-24
Metlock Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.June 30 Bank Reconciliation
Balance per bank$42,000
Add: Deposits in transit9,240
Deduct: Outstanding checks(12,000
)
Balance per books$39,240
Month of July Results
Per Bank
Per Books
Balance July 31 $51,900 $55,500 July deposits 30,000 34,860 July checks 24,000 18,600 July note collected (not included in July deposits) 6,000 July bank service charge 90 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 2,010Explanation / Answer
Solution:
Bank Reconciliation
Working
Balance per bank statement
51,900
Add: Deposit Transit
14,100
34860-30000+9240
Deduct: Outstanding Check
-6600
Correct cash balance
59,400
Balance per books, July 31
55,500
Add: Note Correction
6000
Less: Service Charge
-90
NSF
-2010
Corrected cash balance,
59,400
?
Journal entry:
Cash
3900
Office expenses--Bank Service Charge
90
Accounts Receivable
2010
Notes Receivable
6000
Bank Reconciliation
Working
Balance per bank statement
51,900
Add: Deposit Transit
14,100
34860-30000+9240
Deduct: Outstanding Check
-6600
Correct cash balance
59,400
Balance per books, July 31
55,500
Add: Note Correction
6000
Less: Service Charge
-90
NSF
-2010
Corrected cash balance,
59,400
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