Second exercise: The following information pertains to Crane video company: 1. C

ID: 2469671 • Letter: S

Question

Second exercise: The following information pertains to Crane video company: 1. Cash balance per bank , july 31 , $ 7263 2. July bank service charge not recorded by the depositor $ 28. 3. Cash balance per books , July 31 , $7284 4. Deposits in transit $1300 5. Bank collected $700 note for Crane in July, plus interest $36 , less fee $20. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks $591 Required: a. Prepare a bank reconciliation at July 31 b. Journalize the adjusting entries Second exercise: The following information pertains to Crane video company: 1. Cash balance per bank , july 31 , $ 7263 2. July bank service charge not recorded by the depositor $ 28. 3. Cash balance per books , July 31 , $7284 4. Deposits in transit $1300 5. Bank collected $700 note for Crane in July, plus interest $36 , less fee $20. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks $591 Required: a. Prepare a bank reconciliation at July 31 b. Journalize the adjusting entries Second exercise: The following information pertains to Crane video company: 1. Cash balance per bank , july 31 , $ 7263 2. July bank service charge not recorded by the depositor $ 28. 3. Cash balance per books , July 31 , $7284 4. Deposits in transit $1300 5. Bank collected $700 note for Crane in July, plus interest $36 , less fee $20. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks $591 Required: a. Prepare a bank reconciliation at July 31 b. Journalize the adjusting entries

Explanation / Answer

Answer

Answer a

Bank Reconciliation statement (Crane Video company)

Figures in $

Particulars

Amount

Cash balance as per books July 31 (Dr.)

7284

July bank Service Charges

-28

Deposits in transit

-1300

Collection of note for crane

716

(700+36-20)

Outstanding Checks

591

Cash balance as per bank July 31 (Cr)

7263

(a+b+c+d+e)

b. Journalise adjusting Entries

1. Bank Services Charges A/c Dr. $ 28

To Bank A/c Cr. $ 28

2. Bank A/c Dr. $ 716

Fees A/c Dr. $ 20

To Note sent for collection A/c Cr. $ 700

To Interest A/c Cr. $ 36