Alpha Company had the following banking information from its bank statement date

Question

Alpha Company had the following banking information from its bank statement dated July 31 2017 Amount Cash Balance per Bank (7/3/17) Bank Service Charges Collection of Note Recelvable from Mr. Yankee $3.350 75 3.145 including the interest of $145 Customer (M. Welcher) returned cheque NSF 225 The following additional information was determined from a review of the cash payments & receipts and the cheque register for ipha Company tThe folowing cheques had not deared the bank as paid. Amount Date Ck 5/25/17 1005 Bravo Office Supply Store 7/15/1 1025 IZdu Electric Company 7/30/171030 Bravo Office Supply Store Accounts Parable $250 1900 250 2 The folowing information was recorded in Alpha's cash receipts ledger and hieut yet been recorded in he bank statements Amount 5125717 5200 Store Cash Sales Store Cash Sales 31/17 Cheques From Store Sales 7131717 5,500 7/31/17 Cash Balance per General Ledger (7/31/17) Prepare, the compound general journal entry lwithout explanatlon) needed to record the adjustments required to reconcile the July 31st cash book balance to the adjusted bank balance·lf no entry is required then write No Entry Required"

Explanation / Answer

Answer 1. Alpha Co. Bank Recocilation July 31, 2017 Bank's Cash Balance Company's Cash Balance Per Bank Statement            3,350.00 Per General Ledger         4,005.00 Add: Add: Deposit not recorded by bank Notes Collected by Bank Directly               3,000.00 Store Cash Sales - 25/5/17                200.00 Interest on Notes Collected                145.00         3,145.00 Store Cash Sales - 31/7/17                200.00 Chq. From Store Sales - 31/7/17            5,500.00            5,900.00            9,250.00         7,150.00 Less: Less: Outstanding Checks Bank Service Charges                (75.00) Check # 1005              (250.00) NSF Check              (225.00)          (300.00) Check # 1025          (1,900.00) Check # 1030              (250.00)          (2,400.00) Bank Balance after Reconcilation            6,850.00 Company Balance per Reconcilation         6,850.00 Answer 2. Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 31-Jul Cash                                                                       3,145.00 Notes Receivable    3,000.00 Interest Revenue       145.00 (To Record Note collected by bank) 31-Jul Accounts Receivable          225.00 Cash       225.00 (To record NSF Check) 31-Jul Bank Charges            75.00    Cash          75.00 (To record bank service charge) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.