hina Imports\'bank statement, as of July 31, 20xx shows a balance of $14,460. Th

Question

hina Imports'bank statement, as of July 31, 20xx shows a balance of $14,460. The July 31" unadjusted balance in the company's cash account is $16,250 a. The bank statement indicated that China Imports earned $60 of interest revenue. b. China Import's accountant mistakenly recorded a $430 check that was written to purchase supplies as $350. c. Bank service charges for the month were $45. d. The bank reconciliation disclosed that $800 had been stolen from China Imports' business. e. Outstanding checks amounted to $2,600 f. The bank collected $4,000 of China Imports' accounts receivable. China Imports has instructed its customers to send their payments directly to the bank. g. The bank mistakenly gave Imports Inc. credit for a $800 deposit made by China Imports. h. Deposits in transit were $6,200 i. China Import's bank statement contained a $525 NSF check. China Imports had received the check from a customer and had included it in one of its bank deposits Prepare a bank reconciliation for July.

Explanation / Answer

Solution:

China Imports Bank Reconciliation - July 31 Bank's Cash balance Company's cash balance Particulars Amount Particulars Amount Ending balance as per Bank Statements $14,460.00 Ending Balance as per cash books $16,250.00 Additions: Additions: Deposit in Transit $6,200.00 Collection of accounts receivables $4,000.00 Bank Error on deposit $800.00 Interest revenue $60.00 Deductions: Deductions: Outstanding Checks $2,600.00 NSF Cheque $525.00 Bank Service Charge $45.00 Correction of error ($430 - $350) $80.00 Stolen Funds $800.00 True cash balance, July 31 $18,860.00 True cash balance, July 31 $18,860.00

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