Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. On July 31, 2022. Cullumber Company had a cash balance per books of $6,360.00. The statement from Dakota State Bank on that date showed

image text in transcribed
image text in transcribed
image text in transcribed
3. On July 31, 2022. Cullumber Company had a cash balance per books of $6,360.00. The statement from Dakota State Bank on that date showed a balance of $7.910.80. A comparison of the bank statement with the Cash account revealed the following facts 1 The bank service charge for July was $17.00. 2 The bark collected $1,635.00 from a customer for Cullumber Company through electronic funds transfer. The July 31 receipts of $1.316.30 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 L. Taylor a creditor for $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on Aily 10 for $348.00 5. Checks outstanding on July 31 totaled $1.975.10. 6 On July 31. the bank statement showed an NSF charge of 5690.00 for a check received by the company from W.Krueger, a customer, on account CULLUMBER COMPANY Bank Reconciliation July 31, 2022 Cash balance per bank statement 7910 Add Deposits in transit Less Outstanding checks Adjunted cash balance perbank $ Cash balance per books $ Add Electronic funds transfer received Less Bank service charge S NSF check Error la recordincheck No 2400 Adjunted cash balance per book 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 July 31 Cash Accounts Receivable To record electronic funds transter received by bank) 31 Accounts Receivable Cash Over and Short (To record NSF check) 31 Accounts Payable Cash (To correct error in recording check) Bank Charges Expense 31 Cash (To record bank service charge)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental And Safety Auditing Program Strategies For Legal International And Financial Issues

Authors: Unhee Kim, John F. Falkenbury, Timothy A. Wilkins, Ralph Rhodes, Richard J. Satterfield

1st Edition

ISBN: 1566702461, 978-1566702461

More Books

Students also viewed these Accounting questions