Brief Exercise 7-10 The following information relates to Cullumber Limited\'s Ca

Question

Brief Exercise 7-10 The following information relates to Cullumber Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $19,530. During the month of July, Cullumber recorded cash receipts of $21,200 and cash payments of $24,300 in the general ledger Cash account. An examination of the company's July bank statement shows a balance of $19,370 on July 31; outstanding cheques $3,740; deposits in transit $1,560; EFT collections on account that were not yet recorded on the books $2,184; NSF cheque $1,256; NSF fee $64; and bank services charges $104 Determine the cash balance per Cullumber Limited's books. Cash balance s Prepare the bank reconciliation at July 31. (List items that increase balance as per bank &books; first.)

Explanation / Answer

Cash balance per books at March 31 opening cash balance,March 1 19,530 Add:Deposits 21,200 less:payments -24,300 Cash balance per books at March 31 16,430           Bank Reconciliation Unadjusted bank balance 19,370 Add: Deposits in transit 1,560 20,930 less:Checks oustanding 3,740 Reconciled cash balance per bank 17,190 unadjusted cash balance 16,430 Add: EFT collection 2,184 18,614 less: NSF cheque (1256+64) 1,320 Bank service charges 104 1,424 Reconciled cash balance per books 17,190

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