Exercise 7-11

The following information pertains to Crane Video Company.

1.		Cash balance per bank, July 31, $8,003.
2.		July bank service charge not recorded by the depositor $36.
3.		Cash balance per books, July 31, $8,024.
4.		Deposits in transit, July 31, $1,870.
5.		Bank collected $1,270 note for Crane in July, plus interest $44, less fee $28. The collection has not been recorded by Crane, and no interest has been accrued.
6.		Outstanding checks, July 31, $599.

Prepare a bank reconciliation at July 31 (List items that increase cash balance first. Reconcile cash balance per bank first.) CRANE VIDEO COMPANY Bank Reconciliation July 31 8,003 Cash balance per bank statement Add T Deposits in transit 1,870 9873 Less Toutstanding checks 599 9274 Adjusted cash balance per bank Cash balance per bank statement Add J: Cash balance per books a Less Collection of note receivable Cash balance per books