financial accounting hw problem: On July 31, 2012, Johnson Company had a cash ba

Question

financial accounting hw problem:

On July 31, 2012, Johnson Company had a cash balance per books of $6,384. The statement from Nashota State Bank on that date showed a balance of $7,934.80. A comparison of the bank statement with the Cash account revealed the following facts.

a) Prepare the bank reconciliation as of July 31.

1. The bank service charge for July was $20. 2. The bank collected a note receivable of $1,691 for Fraiser Company on July 15, plus $35 of interest. The bank made a $15 charge for the collection. Fraiser has not accrued any interest on the note. 3. The July 31 receipts of $1,389.30 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. Crain, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00. 5. Checks outstanding on July 31 totaled $2,042.10. 6. On July 31, the bank statement showed an NSF charge of $766 for a check received by the company from K. Fonner, a customer, on account. On July 31, 2012, Johnson Company had a cash balance per books of $6,384. The statement from Nashota State Bank on that date showed a balance of $7,934.80. A comparison of the bank statement with the Cash account revealed the following facts.

Explanation / Answer

Balance as per books 6384.00 ADD Checks outstanding 2042.10 note receivable 1691.00 interest on note receivable 35.00 3768.10 Less Bank service charges 20.00 Bank charge for collection 15.00 Deposits on 31st july night 1389.30 NSF Charges 766.00 wrong entry in cash payment journal 374-347= 27.00 2217.30 Balance as per bank 7934.80

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