Exercise 7-8

The following information pertains to Ivanhoe Company.

1.		Cash balance per bank, July 31, $7,488.
2.		July bank service charge not recorded by the depositor $43.
3.		Cash balance per books, July 31, $7,524.
4.		Deposits in transit, July 31, $2,860.
5.		$2,176 collected for Ivanhoe Company in July by the bank through electronic funds transfer. The collection has not been recorded by Ivanhoe Company.
6.		Outstanding checks, July 31, $691.

Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.)

IVANHOE COMPANY Bank Reconciliation Choose the accounting period
Select an opening section 1 name Adjusted cash balance per bank, Cash balance per bank statement, Outstanding checks, Deposits in transit, Bank service charge, Electronic funds transfer received			$Enter a dollar amount
Add/Less	Select a reconciling item Outstanding checks, Electronic funds transfer received, Bank service charge, Cash balance per bank statement, Adjusted cash balance per bank, Deposits in transit		Enter a dollar amount
			Enter a subtotal of the two previous amounts
Less/Add	Select a reconciling item Cash balance per bank statement, Electronic funds transfer received, Adjusted cash balance per bank, Deposits in transit, Outstanding checks, Bank service charge		Enter a dollar amount
Select a closing section 1 name Electronic funds transfer received, Outstanding checks, Adjusted cash balance per bank, Bank service charge, Cash balance per bank statement, Deposits in transit			$Enter a total amount for section one
Select an opening section 2 name Cash balance per books, Bank service charge, Outstanding checks, Deposits in transit, Electronic funds transfer received, Adjusted cash balance per books			$Enter a dollar amount
Add/Less	Select a reconciling item Cash balance per books, Deposits in transit, Adjusted cash balance per books, Outstanding checks, Electronic funds transfer received, Bank service charge		Enter a dollar amount
			Enter a subtotal of the two previous amounts
Add/Less :	Select a reconciling item Cash balance per books, Deposits in transit, Outstanding checks, Bank service charge, Adjusted cash balance per books, Electronic funds transfer received		Enter a dollar amount
Select a closing section 2 name Bank service charge, Cash balance per books, Electronic funds transfer received, Deposits in transit, Adjusted cash balance per books,Outstanding checks			$Enter a total amount for section two

Journalize the adjusting entries at July 31 on the books of Ivanhoe Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 31		Enter a debit amount	Enter a credit amount
		Enter a debit amount	Enter a credit amount
	(To record electronic funds transfer received by bank)
July 31		Enter a debit amount	Enter a credit amount
		Enter a debit amount	Enter a credit amount
	(To record bank service charge)