On August 2, Northway Hotel receives its bank statement (on the following page). The company deposits its

Question:

On August 2, Northway Hotel receives its bank statement (on the following page). The company deposits its receipts in the bank and makes all payments by check. The debit memo for $37 is for an NSF check written by T. N. Rankin. Check no. 1617 for $72.50, payable to Melville Company (a cred¬

itor), was incorrectly recorded in the checkbook and journal as $27.50.

The balance of the Cash account as of July 31 is $1,482.46. Outstanding checks as of July 31 are; no. 1631, $110; no. 1632, $71.19; no. 1633, $163.20.

The accountant notes that the July 31 deposit of $165.69 did not appear on the bank statement.

Instructions 1. Prepare a bank reconciliation as of July 31, assuming that the debit memos have not been recorded.

2. Record the necessary journal entries.

3. Complete the bank form to determine the adjusted balance of cash.

Instructions for General Ledger Software 1. Prepare a bank reconciliation as of July 31. Errors made by the company or the bank, as well as service charges, must be entered as debit or credit memos.

2. Print the bank reconciliation.

3. Record the necessary journal entries.

4. Print the journal entries.

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