Exercise 7-8 SHOW LIST OF ACCOUNTS Date Account Titles and Explanation Debit Cre

Question

Exercise 7-8

SHOW LIST OF ACCOUNTS

Date

Account Titles and Explanation

Debit

Credit

(To record electronic funds transfer received by bank)

(To record bank service charge)

Exercise 7-8

The following information pertains to Cullumber Company.
1. Cash balance per bank, July 31, $8,538. 2. July bank service charge not recorded by the depositor $64. 3. Cash balance per books, July 31, $8,574. 4. Deposits in transit, July 31, $3,910. 5. $3,226 collected for Cullumber Company in July by the bank through electronic funds transfer. The collection has not been recorded by Cullumber Company. 6. Outstanding checks, July 31, $712.

Explanation / Answer

SOLUTION

(1) Bank Reconciliation Statement-

(2) Journal Entries-

Particulars Amount ($) Particulars Amount ($) Balance as per bank statement 8,538 Balance as per books 8,574 Add: Deposits in transit 3,910 Add: Collection by bank 3,226 12,448 11,800 Less: Outstanding checks (712) Less: Bank Service charge (64) Adjusted bank balance 11,736 Adjusted book balance 11,736

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