My Subscriptions Courses ACC211-Financial Accounting / Chapter 7 Chapter 7 homew

Question

My Subscriptions Courses ACC211-Financial Accounting / Chapter 7 Chapter 7 homework QUESTION 3 Not complete 0.29 paints out of 1.00 P Flag question Bank Reconciliation On July 31, Sulivan Company's Cash in Bank account had a balance of $8.659.92. On that date, the bank statement indicated a balance of $10,918.26 A comparison of returned checks and bank advices revealed the following 1. Deposits in transit July 31 amounted to $4,292.34 2. Outstanding checks July 31 totaled $1,761.48 3. The bank erroneously charged a $390.00 check of Solomon Company against the Sulivan bank account 4. A bank service charge has not yet been recorded by Sullivan Company of $30.00 5. Sullivan neglected to record $4,800.00 borrowed from the bank on a ten percent six-month note. The bank statement shows the $4,800.00 as a deposit. 6. Included with the returned checks is a memo indicating that J. Martin's check for $768.00 had been returned NSF.Martin, 7. Sulivan Company recorded a $130.80 payment for repairs as $1,308.00 a customer, had sent the check to pay an account of $792.00 less a $24 discount a. Prepare a bank reconciliation for Sultlivan Company at July 31 b. Prepare the journal entry for entries) necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. SULLIVAN COMPANY 17 f 10 112 prt pouse breaksy 5 6 7 8 9 0

Explanation / Answer

BANK RECONCILIATION STATEMENT Balance as per bank statement 10918.26 Balancec as per books 8659.92 Add: Deposits in transit 4292.34 Add: Borrowng from bank 4800 Add: Error in debiting the account 390 Add: Error in recording repairs 1177.2 Sub totals 15600.6 14637.12 Less: Outstanding checks 1761.48 Less: Service charges 30 Less: NSf check 768 Adjusted balance as perr bank statement 13839.12 Adjusted balance as per books 13839.12 Journal entries: Cash Account Dr. 4800     Notes payable 4800 Cash Account Dr. 1177.2       Repairs expense 1177.2 Service expense Dr. 30        Cash Account 30 Accounts receivable Dr. 792         Cash Account 768         Sales discount 24

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