BRANCH COMPANY July 31, 2013 a. Cash balance USS 27,497 US$ 27,233 Bank statement balance b. Outstanding checks No. 3031 No. 3040 (returned with July statement) No. 3065 No. 3069 USS 1,482 US$ US$ US$ 2,281 558 382 c. Check No. 3056 (rent pmt.): Amount entered in books Actual amount USS 1,250 USS 1,270 d. Branch note collection: Total collected by bank Collection fee charged US$ 8,000 US$ 45 e. Evan Shaw check: US$ US$ US$ USS 11,514 795 10 25 Amount of NSF check f. g. NSF charge by bank Bank service charge Deposit not yet credited by bank Additional information for analysis (a) Unadjusted cash account balance USS 27,497 USS 27,947 Reported unadjusted cash account balance (b) Note collection is added to bank statement cash balance on reconciliation ($8,000 less $45 collection fee) Check figures (1) Reconciled balance (2) Credit Note Receivable USS 34,602 US$ 8,000 BRANCH COMPANY Bank Reconciliation 2013/7/31 Bank statement balance Add Book balance Add Deposit of July 31 Total Proceeds of note less collection charge Deduct Outstanding Checks 3031 3065 3069 NSF check Service charge Error (Check no. 3056) Adjusted bank balance USS 0 Try again Adjusted book balance USS 0 Try BRANCH COMPANY General Journal Date Account Title Credit 731 Cash Collection Expense Notes Receivable To record note collection less fees. 31 Accts. Receivable E. Shaw Cash To charge account for NSF check plus fees. 0 Try again 31 Miscellaneous Expenses Cash To record bank service fee. 0 Try again 31 Rent Expense Cash To correct an entry error 0 Try again For each of the following errors, explain the effect on (i) the adjusted bank statement cash balance and (ii) the adjusted cash account book balance a. Unadjusted cash account balance of $27,497 is listed on reconciliation as $27,947 b. Collection of $8,000 note less $45 collection fee is added to bank statement cash balance on reconciliation. a. (i) The final balance that results from adjusting the bank statement balance will not be affected by the error; and (ii) The final balance that results from adjusting the book balance of cash will be overstated by $450 ($27,947-$27,497), and the bank reconciliation will not balance. b. (i) The final balance that results from adjusting the bank statement balance will be overstated by $7,955; and (ii) The final balance that results from adjusting the book balance will be understated by $7,955