Required information [The following information applies to the questions display

Question

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 balance as of July 31, 2017.

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.

Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconciliation. Check 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.

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 accounting records as $1,250.

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 the statement.

The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.

The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.

Branch's July 31 daily cash receipts of $11,514 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.

Required:

1. Prepare the bank reconciliation for this company as of July 31, 2017.

2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3 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 1 of 2 balance as of July 31, 2017 points a. On July 31, the company's Cash account has a $27497 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. n comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Print Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the 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 g. Branch's July 31 daily cash receipts of $11,514 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 because no previous notification had been received on the July 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of July 31, 2017

Explanation / Answer

BRANCH COMPANY Bank Reconciliation 31-Jul-17 Bank statement balance $27,233 Book balance $27,497 Add: Add: Deposit of July 31 $11,514 Proceeds of note less collection charge $7,955 11514 7955 38747 35452 Deduct: Deduct: Check No. 3031 1,482 NSF check including fee 805 Check No. 3065 382 Service charge 25 Check No. 3069 2,281 Error (Check 3056) 20 4145 850 Adjusted bank balance 34602 Adjusted book balance 34602 Transaction General Journal Debit Credit a. No journal entry required b. No journal entry required c. Rent expense 20 Cash 20 d. Cash 7,955 Collection expense 45 Notes receivable 8,000 e. Accounts receivable—E. Shaw 805 Cash 805 f. Miscellaneous expenses 25 Cash 25 g. No journal entry required

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