Exercise 7-8 The following information pertains to Sandhill Company. 1. Cash bal

Question

Exercise 7-8 The following information pertains to Sandhill Company. 1. Cash balance per bank, July 31, $7,788. 2. July bank service charge not recorded by the depositor $49. 3. Cash balance per books, July 31, $7,824. 4. Deposits in transit, July 31, $3,160. 5. $2,476 collected for Sandhill Company in July by the bank through electronic funds transfer. The collection has not been recorded by Sandhill Company. 6. Outstanding checks, July 31, $697. Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.) SANDHILL COMPANY Bank Reconciliation $ : : $ $ : : $ SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize the adjusting entries at July 31 on the books of Sandhill Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 (To record electronic funds transfer received by bank) July 31 (To record bank service charge) SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Bank reconciliation statement :

Adjusting entry :

Balance as per bank statement 7788 Add: Deposits in transit 3160 10948 Less: Outstanding checks -697 Adjusted balance as per book 10251 Unadjusted balance as per cash book 7824 Add: Electronic fund transfer 2476 10300 Less: Bank service charges -49 Adjusted balance as per book 10251

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