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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SHOW LIST OF ACCOUNTS

LINK TO TEXT

Exercise 7-8

The following information pertains to Pharoah Company.
1. Cash balance per bank, July 31, $8,138. 2. July bank service charge not recorded by the depositor $56. 3. Cash balance per books, July 31, $8,174. 4. Deposits in transit, July 31, $3,510. 5. $2,826 collected for Pharoah Company in July by the bank through electronic funds transfer. The collection has not been recorded by Pharoah Company. 6. Outstanding checks, July 31, $704.

Explanation / Answer

Prepare a bank reconciliation at July 31, 2017

Journalize the adjusting entries at July 31 on the books of Pharoah Company.

Unadjusted Cash balance per bank 8138 Add: Deposit in transit 3510 11648 Less:Outstanding checks (704) Adjusted Cash balance 10944 Unadjusted cash balance per book 8174 Add: Electronic fund transfer 2826 11000 Less: Bank service charges (56) Adjusted cash balance 10944

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