ezto.mheducation.com/hm.tpx a. On July 31, the company\'s Cash account hes a $25
ID: 2480619 • Letter: E
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ezto.mheducation.com/hm.tpx a. On July 31, the company's Cash account hes a $25,756 debit balance, but ts July bank statement shows e $27849 cash balance b. Check No. 3031 for $1,430 and Check No. 3040 for $707 were outstanding on the June 30 bank reconciliation. Check No. 3040 is lsted with the July canceled checks, but Check No. 3031 is not Also, Check No. 3065 for $491 and Check No. 3069 for $2198, both wrimen in July. are not among the canceled checks on the July 31 statement c. In compering the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly writen and drewn for $1,290 but was erroneously entered in the accounting records as $1,280 A credn memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-beering note for Branch, deducted a $45 collection fee, and credited the remainder to ts account Branch had not recorded this event before recelving the statement d. . A debt memorandum for S805 lists ‘ $795 NSF check plus a $10 NSF charge The check had been recetved from a customer, Evan Shaw Branch has not yet recorded this check as NSF t Enclosed with the July stotement is o $14 debit memorandum for bank services. it har not yet been recorded because no previous notfication had been received g Branch's July 31 dally cash recetpts of $10.152 were placed in the bank's night depository on that dace but do not appear on the July 31 bank stanement ed: e the bank reconciliation for this company as of July 31, 2015 Bank R Jully 31, 2015 Bank statement balance 27.849 Book balance Add S 25.756 Add Deposit of July 31 S 10, 152 Proceeds of note less collection charge $ 8955 2.198 S 10,152 10,152 Check No 3069 38 001 11,153 36,909 Deduct Deduct Check No 3031 Check N3040 Check No 3065 1.430 707 491 Service charge NSF check including fee Emor (Check 3056) 14 805 1,290 2 628 3 35 373 Adusted book balance 2.109 $ 34,800 Adjusted bank balance Adjusted book balanceExplanation / Answer
Answer 1. Branch Company Bank Recocilation July 31, 2015 Bank's Cash Balance Compnay's Cash Balance Per Bank Statement 27,849.00 Per General Ledger 25,756.00 Outstanding Checks Check #3056 - Error in recording (1290-1280) (10.00) Check #3031 (1,430.00) Check #3040 - Cancelled Check - Non Interest Bearing Note Collected by Bank 9,000.00 Check #3065 (491.00) Bank Service Fees for Collection (45.00) Check #3069 (2,198.00) NSF Check (795.00) Cash Deposited But not Credited 10,152.00 NSF Check - Bank Charges (10.00) Bank Charges (14.00) Bank Balance after Reconcilation 33,882.00 Company Balance per Reconcilation 33,882.00 Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash Dr. 9000 To Notes Receivables 9000 (Notes receivables and interest collected by bank directly) 2 Bank Charges Dr. 45.00 To Cash 45.00 (Bank Service Charges charged by bank directly on Collection of Note) 3 Accounts receivables Dr. 795 To Cash 7095 (Record the NSF check ) 4 Bank Charges Dr. 10.00 To Cash 10.00 (Bank Service Charges charged by bank directly on NSF Check) 5 Bank Charges Dr. 14.00 To Cash 14.00 (Bank Service Charges charged by bank) 6 Accounts Payable Dr. 10.00 To Cash 10.00 (record the adjusting entry for Check No 3056)
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