1. The bank service charge for July was $21. 2. The bank collected a note receiv

Question

1. The bank service charge for July was $21. 2. The bank collected a note receivable of $1,666 for Redeker Company on July 15, plus $34 of interest. The bank made a $14 charge for the collection. Redeker has not accrued any interest on the note. 3. The July 31 receipts of $1,363.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to T. Laird, a creditor, for $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348.00. 5. Checks outstanding on July 31 totaled $2,026.10. 6. On July 31, the bank statement showed an NSF charge of $741 for a check received by the company from K. Wagner, a customer, on account. Pad * %120+ 13:32 edugen.wileyplus.com Your answer is correct. Prepare the bank reconciliation as of July 31 REDEKER COMPANY Bank Reconciliation July 31, 2014 7,984.8 1,363.3 9,348.1 2,026.1 7,322 Cash balance per bank statement Add: Deposits in transit Less:Outstanding checks Cash balance per books 6434 Add Collection of note receivable 1686 8120 Less NSF check 74 36 Bank service charge 798 Adjusted cash balance per books 7322 LIST OF ACCOUNTS SH OW SOLUTION LINK TO TEXT LINK TO VIDEO Attempts: 2 of 2 used (b) Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date. Account Titles and Explanation Debit Credit uly 31 (To record collection of note receivable by bank) 31 (To record NSF check) 31 (To correct error in recording check) 31 (To record bank service charge) LIST QF ACCOUNTS

Explanation / Answer

31-Jul Cash $ 1,686 Bank charges $        14 Interest income $        34 Note receivable $ 1,666 (To record collection of net receivable by bank) 31-Jul Accounts receivable - K. Wagner $     741 Cash $     741 (To record NSF check) 31-Jul Accounts payable - T.Laird ($384-$348) $        36 Cash $        36 (To correct error in recording check) 31-Jul Bank charges $        21 Cash $        21 (To record bank service charge)

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