Exercise 7-8 : : : : Show List of Accounts Date Account Titles and Explanation D

Question

Exercise 7-8

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Show List of Accounts

Date

Account Titles and Explanation

Debit

Credit

July 31

(To record electronic funds transfer received by bank)

July 31

(To record bank service charge)

Exercise 7-8

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.

Explanation / Answer

Bank Reconcilliation Satement dated 31/July Balance as per bank         7,388 +bank Charges not recorded in cash book               41 +Deposit in transit         2,760 +Check outstanding           -689 -collected through bank not recorded in cash book       -2,076 Balance as per cash book         7,424 Journal Entry Recording of Bank Charges Date Account Title Debit Credit 31-Jul-17 Bank service charges               41 Cash               41 Recording of checks collected Date Account Title Debit Credit 31-Jul-17 Cash         2,076 Customers         2,076

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