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E Menu ACC211-Financial Accounting My Subscriptions/Courses ACC211-Financial Accounting Chapter 7/ Chapter 7 homework QUESTION 4 Not complete Ports ou of 1.00 ?Rg0eston Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9.381.58 On that date, the bank statement indicated a balance of $11,828.12 A comparison of returned checks and bank advices revealed the following 1. Deposits in transit July 31 amounted to $4,650.03. 2. Outstanding checks July 31 totaled $1,908.27 3. The bank erroneously charged a s422.50 check of Solomon Company against the Sullivan bank account 4. A bank service charge has not yet been recorded by Sulivan Company of $32.50 5. Sullivan neglected to record $5,200.00 borrowed from the bank on a ten percent sx-month note. The bank statement shows the $5.200.00 as a deposit 6. Included with the returned checks is a memo indicating that J. Martin's check for $832 00 had been returned NSF. Martin, à customer, had sent the check to pay an account of $858.00 less a s26 discount 7. Sullivan Company recorded a $141.70 payment for repairs as $1,417.00 Required a. Prepare a bank reconciliation for Sullivan 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 prt sc break

Explanation / Answer

BANK RECONCILIATION STATEMENT Balance as per bank statement 11828.12 Balance as per Books 9381.58 Add: Deposits in transit 4650.03 Add: Error in repairs 1275.3 Add: Error in debit 422.5 Check for 141.7 recorded as 1417 Add: Notes payable 5200 Sub totals 16900.65 Subtotals 15856.88 Less: Outstanding Checks 1908.27 Lless: Service charges not recorded 32.5 Less: NSf check 832 Adjusted balance of Bank Statement 14992.38 14992.38 Journal entries: Cash Account Dr. 5200       Notes payable 5200 Cash Account Dr. 1275.3       Repairs expense 1275.3 Service expense Dr. 32.5       Cash Account 32.5 Accounts receivable Dr. 858        Cash Account 832        Sales discount 26

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