3 Check ms Required information [The following information applies to the questi

Question

3 Check ms Required information [The following information applies to the questions displayed below The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash Part 2 of 2 balance as of July 31, 2017 20 points a. On July 31, the company's Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconciliation. Check eBook No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $382 and Check No. 3069 for $2,281, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the Print accounting records as $1,250. d. The July bank statement shows the bank collected $8,000 cash on a noninterest-bearing note for Branch, deducted a $45 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving References e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been f. The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because g. Branch's July 31 daily cash receipts of $11514 were placed in the bank's night depository on that date but do not appear the statement. received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF no previous notification had been received. on the July 31 bank statement. l entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance 2. Prepare t as of July 31, 2017. (If no entry is required for a transaction/event, select "No he journa journal entry required" in the first account field,) View transaction list

Explanation / Answer

Bank Reconciliation Bank Statement balance 27,233 Book Balance 27,497 Add Add: Deposit of July 31 11,514 Proceeds of note less collection charge 7955 11,514 7,955 38,747 35,452 Deduct: Deduct: check no 3031 1,482 NSF Check 805 check no 3065 382 Service Charge 25 check no 3069 2,281 Error (Check 3056) 20 4,145 850 Adjusted bank balance 34,602 34,602 Journal Entries Date General Journal                                                       Debit Credit uly 31 Cash 7,955 Collection expense 45 Note receivable 8,000 (being note collected) 31-Jul Account receivable-shaw 805 cash 805 (being NSF) 31-Jul Miscellaneous expense 25 cash 25 (being service charge) 31-Jul Rent expense 20 cash 20 (beig error rectified)

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