Exercise 7-8 SHOW LIST OF ACCOUNTS LINK TO TEXT Date Account Titles and Explanat

Question

Exercise 7-8

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Date

Account Titles and Explanation

Debit

Credit

(To record electronic funds transfer received by bank)

(To record bank service charge)

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Exercise 7-8

The following information pertains to Sandhill Company.
1. Cash balance per bank, July 31, $8,338. 2. July bank service charge not recorded by the depositor $60. 3. Cash balance per books, July 31, $8,374. 4. Deposits in transit, July 31, $3,710. 5. $3,026 collected for Sandhill Company in July by the bank through electronic funds transfer. The collection has not been recorded by Sandhill Company. 6. Outstanding checks, July 31, $708.

Explanation / Answer

Prepare a bank reconciliation at July 31, 2017.

Journalize the adjusting entries at July 31 on the books of Sandhill Company

Balance as per bank 8338 Add: Deposit in transit 3710 12048 Less: Outstanding checks (708) Adjusted balance as per bank 11340 Balance as per book 8374 Add: Electronic fund transfer 3026 11400 Less; Bank service charges (60) Adjusted cash balance 11340

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