The following information pertains to Crane Video Company. Outstanding checks, J

Question

The following information pertains to Crane Video Company.

Outstanding checks, July 31, $599.

A) Prepare a bank reconciliation at July 31.

B)Journalize the adjusting entries at July 31 on the books of Crane Video Company.

1. Cash balance per bank, July 31, $7,743. 2. July bank service charge not recorded by the depositor $36. 3. Cash balance per books, July 31, $7,764. 4. Deposits in transit, July 31, $1,740. 5. Bank collected $1,140 note for Crane in July, plus interest $44, less fee $28. The collection has not been recorded by Crane, and no interest has been accrued. 6.

Outstanding checks, July 31, $599.

A) Prepare a bank reconciliation at July 31.

B)Journalize the adjusting entries at July 31 on the books of Crane Video Company.

Explanation / Answer

A) Prepare a bank reconciliation at July 31.

Adjusting entry

Unadjusted balance as per bank 7743 Add: Deposit in transit 1740 9483 Less: Outstanding checks -599 Adjusted balance as per cash book 8884 Unadjusted balance as per cash book 7764 Add: Direct collected by bank 1156 8920 Less: Bank charges -36 Adjusted balance as per cash book 8884

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