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Chapter $7$

I Exa

$3($Chap $6$ and $7)$

Exam $3($Chap $6$ and $7)$

Bank Reconciliation On July $31,$ Sullivan Company's Cash in Bank account had a balance of $$10,103\mathrm{.}24.$

On that date, the bank statement indicated a balance of $$12,737\mathrm{.}97.$

A comparison of returned checks and bank advices revealed the following:

Deposits in transit July $31$ amounted to $$5,007\mathrm{.}73.$

Outstanding checks July $31$ totaled $$2,045\mathrm{.}06.$

The bank erroneously charged a $$455\mathrm{.}00$ check of Solomon Company against the Sullivan bank account.

A bank service charge has not yet been recorded by Sullivan Company of $$25\mathrm{.}00.$

Sullivan neglected to record $$5,600\mathrm{.}00$ borrowed from the bank on a ten percent six$-$month note. The bank statement shows the $$5,600\mathrm{.}00$ as a deposit.

Sullivan Company recorded a $$152\mathrm{.}60$ payment for repairs as $$1,526\mathrm{.}00$

Required

a$.$ Prepare a bank reconciliation for Sullivan Company at July $31.$

b$.$ Prepare the journal entry $($or entries$)$ necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

Note: Do not round answers $-$ enter using two decimal places, when needed.

Bank reconciliation

Journal entries