1. Green Valley Bank sent Comstock Industries its end-of-month bank statement for July. The end of month balance by the bank is $11,237. The statement shows that a deposit for $4,250 is in transit at the end of the statement period. The statement also revealed that checks for $87, $105, and $95 are outstanding. Green Valley collected a $4,000 note receivable plus $120 of interest revenue. The bank charges $20 for the collection service. The bank charges a monthly account fee of $35. The end-of-month balance per company books is $11,135.

   Question Content Area

   a. Prepare a bank reconciliation.

   Comstock Industries Bank Reconciliation July 31

   Line Item Description	Amount	Amount
   Cash balance according to bank statement		$Cash balance according to bank statement
   Add: Bank service chargeAdd: Collection feeAdd: Deposits in transitDeduct: Collection feeDeduct: Deposits in transit		- Select -
   Add: Bank service chargeAdd: Collection feeAdd: Outstanding checksDeduct: Collection feeDeduct: Outstanding checks		- Select -
   Adjusted balance		$Adjusted balance
   Cash balance according to company's records		$Cash balance according to company's records
   Add: Deposits in transitAdd: Note and interest collected by bankAdd: Outstanding checksDeduct: Deposits in transitDeduct: Outstanding checks		- Select -
   Add: Collection feeAdd: Deposits in transitAdd: Outstanding checksDeduct: Collection feeDeduct: Deposits in transit	$- Select -
   Add: Bank service chargeAdd: Deposits in transitAdd: Outstanding checksDeduct: Bank service chargeDeduct: Deposits in transit	- Select -
   Total deductions		Total deductions
   Adjusted balance		$Adjusted balance

   Question Content Area

   b. Journalize any necessary entries based on the bank reconciliation. Record the entry to increase cash first. If an amount box does not require an entry, leave it blank.

   Date	Account	Debit	Credit
   July 31	CashInterest RevenueNotes ReceivablePetty CashSales	- Select -	- Select -
   	Interest RevenueMiscellaneous ExpenseNotes ReceivablePetty CashSales	- Select -	- Select -
   	Bank Service Charge ExpenseCashNotes PayableNotes ReceivablePetty Cash	- Select -	- Select -
   	Bank Service Charge ExpenseCashCash Short and OverInterest ExpenseInterest Revenue	- Select -	- Select -
   July 31	Accounts PayableCash Short and OverCashMiscellaneous ExpenseSales	- Select -	- Select -
   	Accounts PayableCashCash Short and OverMiscellaneous ExpensePetty Cash	- Select -	- Select -

   Question Content Area

   c. If the balance sheet were prepared for Comstock Industries on July 31, what amount should be reported for cash? fill in the blank 1 of 1$

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