0 Required information The following information applies to the questions displa

Question

0 Required information The following information applies to the questions displayed below] The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, 2017 a. On July 31, the company's Cash account has a $27497 debit balance, but its July bank statement shows a $27233 cash balance b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not.Also, Check No. 3065 for $382 and Check No. 3069 for $2.281, both written in July, are not among the canceled checks on th c. In comparing the canceled checks on the bank statemen t with the entries in the accounting records, it is found that heck No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,250 d. The July bank statement shows the bank collected $8,000 cash on a noninterest-bearing note for Branch, deducted a $45 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement. ces e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF f. The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received g Branch's July 31 daily cash receipts of $11,514 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement Required: 1. Prepare the bank reconciliation for this company as of July 31, 2017

Explanation / Answer

BRANCH COMPANY Bank Reconciliation 31-Jul-17 Bank statement balance $27,233 Book balance $27,497 Add: Add: Deposit of July 31 $11,514 Proceeds of note less collection charge $7,955 11514 7955 $38,747 $35,452 Deduct: Deduct: Check No. 3031 1,482 NSF check including fee 805 Check No. 3065 382 Service charge 25 Check No. 3069 2,281 Error (Check 3056) 20 4145 850 Adjusted bank balance $34,602 Adjusted book balance $34,602

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