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GL PROBLEM 6-4B On August 2, Northern Motel receives its bank statement (shown on the next page). The company deposits its receipts in the bank

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GL PROBLEM 6-4B On August 2, Northern Motel receives its bank statement (shown on the next page). The company deposits its receipts in the bank and makes all payments by check. The debit memo for $37 is for an NSF check written by T. R. Royce Check no. 1617 for $75.50, payable to Mitchel Company (a creditor), was incorrectly recorded in the checkbook and journal as $57.50. The ledger balance of Cash as of July 31 is $1,909.30. Outstanding checks as of July 31 are no. 1631, $118.20; no. 1632, $78.20; and no. 1633, $178.36. The accountant notes that the July 31 deposit of $630 did not appear on the bank statement. 281 STANTON NATIONAL BANK STATEMENT OF ACCOUNT Northern Motel 423 E. Long Avenue Rockford, IL 61104 SUMMARY Balance Last Statement Amount of Checks and Debits Number of Checks Amount of Deposits and Credits Number of Deposits Balance This Statement ACCOUNT NO. 750-135-772 STATEMENT DATE July 1 to 31, 20- $1,153.80 $2,105.01 14 $2.528.17 7 $1.576.06 CHAPTER ASSIGNMENTS CHECKS/ OTHER DEBITS CHECKS CHECK NUMBER 1617 1618 1619 1620 1621 1622 1623 DATE POSTED 7-03 7-03 7-03 7-05 7-06 7.06 7.08 AMOUNT 75.50 164.00 124.20 13720 236 25 159.89 244.50 CHECK NUMBER 1624 1625 1626 1627 1028 1629 1630 DATE POSTED 7-08 7-09 7-12 7.14 7-22 7.25 7-26 AMOUNT 120.00 409.70 37.40 38.49 182.71 96.87 19.20 OTHER DEBITS DESCRIPTION OM NSF check DM Service charge DATE POSTED 7-22 7-31 AMOUNT 3700 23.00 DEPOSITS DEPOSITS/ OTHER CREDITS DATE POSTED 7.03 7.06 7-09 7-11 AMOUNT 491.50 415.72 439.16 378.20 DATE POSTED 7-15 7-18 7-28 AMOUNT 291,76 142.90 368.93 PLEASE EXAMINE THIS STATEMENT CAREFULLY. REPORT ANY POSSIBLE ERRORS WITHIN 10 DAYS. CODE SYMBOLS CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction Check Figure Adjusted ledger balance of cash, $1,831.30 a Required 1. Prepare a bank reconciliation as of July 31, assuming that the debit memos have not been recorded. 2. Record the necessary journal entries. 3. Complete the bank form to determine the adjusted balance of cash

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