Question
Expands on: E7-11 LO: 7 The following information pertains to Two Guys Video Company. 1. Cash balance per bank, July 31, $7,363. 2. July bank
Expands on: E7-11
LO: 7
The following information pertains to Two Guys Video 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 companys $700 check against Two Guys account.
4. Cash balance per books, July 31, $8,784.
5. The bank charged Two Guys account $350 for a customers NSF check.
6. Deposits in transit, July 31, $2,200.
7. Two Guys recorded a cash receipt from a customer as $32. The bank correctly recorded it at $23.
8. Bank collected a $1,250 note for Two Guys in July, plus interest $36, less fee $20. The collection has not been
recorded by Two Guys and no interest has been accrued.
9. Outstanding checks, July 31, $594.
Instructions:
(a) Prepare a bank reconciliation for July 31.
(b) Journalize the adjusting entries for July 31 on the books of Two Guys Video Company.
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