Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The following information pertains to Crane Company. 1. Cash balance per bank, J

ID: 2560060 • Letter: T

Question

The following information pertains to Crane Company. 1. Cash balance per bank, July 31, $7,388. 2. July bank service charge not recorded by the depositor $41. 3. Cash balance per books, July 31, $7,424. 4. Deposits in transit, July 31, $2,760. 5. $2,076 collected for Crane Company in July by the bank through electronic funds transfer. The collection has not been recorded by Crane Company. 6. Outstanding checks, July 31, $689. Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.)

Explanation / Answer

Bank Reconciliation Statement as at July 31, 2017 Particulars Amount($) Cash Balances as per Bank (a)           7,388 Add: Deposits in transit, July 31           2,760 July bank service charge not recorded by the depositor                41 Sub Total (b)           2,801 Less: Collected for Crane Company in July by the bank through electronic funds transfer         -2,076 Outstanding Cheques             -689 Sub Total (c)           2,765 Cash Balance as per Books (a)+(b)-(c)           7,424