The following information is available to reconcile Branch n is available to rec

Question

The following information is available to reconcile Branch n is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, 2015. a. On July 3t the company's Cash account has a $25750 debit balance, but its July bank statement shows b. Check No. 3031 for $1,740 and Check No. 3040 for $862 were outstanding on the June 30 bank a $28628 cash balance. reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Al Check No. 3065 for $646 and Check No. 3069 for $2,508, both written in July, are not among the canceled checks on the July 31 statement c. In comparing 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 written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260. d. A credt memorandum enclosed with the July bank statement indicates the bank collected $7,500 cash e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been t. Enclosed with the July statement is a $11 de on a non-interest-bearing note for Branch, deducted a $38 collection fee, and credited the remainder to its account.Branch had not recorded this event before receiving the statement t Enclosed with the July statement is a $11 debit memorandum for bank services. It has not yet been g. Branch's July 31 daily cash receipts of $8.652 were placed in the bank's night depository on that date but recelved from a customer, Evan Shaw. Branch has not yet recorded this check as NSF recorded because no previous do not appear on the July 31 bank statement. had been received. g. Branch's Juy 31 daly cash receipts of $8,682 were placed in the bank's night depository on that date but value 3.33 points Required: 1. Prepare the bank reconciliation for this company as of July 31, 2015. BRANCH COMPANY Bank R econcililation July 31, 2015 Bank statement balance Add Book balance Add: Deduct Deduct

Explanation / Answer

Bank Reconciliation Statement : Balance of company’s Cash account on July 31 25750 Add: Check issued but not presented for payment Check No. 3031 1740 Check No. 3065 646 Check No. 3069 2508 Deposite in transit -8652 Error in recording check no. 3056 (1260-1250) -10 Note collected 7500 Charges for note collection -38 NSF Check -795 Charges for NSF Check -10 Bank Charges -11 Balance of Bank account on July 31 28628 Journalize the transactions Account Title and explanation Debit($) Credit($) Accounts Receivable Debit 10                Cash 10 Cash 7462 Bank Charges 38               Notes Receivable 7500 Accounts Receivable Debit 795 Bank Charges 10            Cash 805 Bank Charges 11           Cash 11

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