Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Today

Authors: Emile Woolf

3rd Edition

013052168X, 9780130521682

More Books

Students also viewed these Accounting questions

Question

How is a futures contract settled?

Answered: 1 week ago