E7-11

Make bank reconciliation and related entries. (LO 4) AP

The following information is for Brad's Burger Company:

• 1.Cash balance per bank, July 31, $7,363.
• 2.July bank service charge not recorded by the depositor, $22.
• 3.The bank erroneously charged another company's $700 cheque against Brad's Burger's account.
• 4.Cash balance per books, July 31, $8,784.
• 5.The bank charged Brad's Burger's account $350 for a customer's NSF cheque.
• 6.Deposits in transit, July 31, $2,200.
• 7.Brad's Burger recorded a cash receipt from a cash sale from a customer as $32. The bank correctly recorded it as $23.
• 8.The bank collected a $1,250 note for Brad's Burger in July, plus interest of $36, less a fee of $20. The collection has not been recorded by Brad's Burger and no interest has been accrued.
• 9.Outstanding cheques, July 31, $594.

Instructions (a)

Make a bank reconciliation for July 31.

(b)

Make the adjusting entries for July 31 on the books of Brad's Burger Company.