On July 31, 2017, Cullumber Company had a cash balance per books of $6,250.00. The statement from Dakota State Bank on that date showed a balance of $7,800.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. 2. 3. 4. The bank service charge for July was $20.00. The bank collected $1,630.00 for Cullumber Company through electronic funds transfer. The July 31 receipts of $1,308.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. Company check No. 2480 issued to L. Taylor, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments record on July 10 for $349.00. Checks outstanding on July 31 totaled $1,979.10. On July 31, the bank statement showed an NSF charge of $685.00 for a check received by the company from W. Krueger, a customer, on account. 5. 6. (a) Your answer is correct. Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) CULLUMBER COMPANY Bank Reconciliation July 31, 2017 Cash balance per bank statement 7800.80 Add Deposits in transit 1308.30 9109.10 Less Outstanding checks 1979.10 Adjusted cash balance per bank 7130 Less : Outstanding checks 1979.10 i Adjusted cash balance per bank 7130 Cash balance per books 6250 Add : Electronic funds transfer received 1630 7880 Less : Bank service charge $ 20 i NSF check 685 i Error in recording check No. 2480 45 i 750 i Adjusted cash balance per books $ 7130 (b) Prepare a tabular analysis for the necessary adjustments at July 31. Include margin explanations for the changes in revenues and expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 2 decimal places, e.g. 52.75.) Assets Liabilities + Accts. Accts. Rec. Cash + = Pay. + Rev. July 31 31 31 31 (b) Prepare a tabular analysis for the necessary adjustments at July 31. Include margin explanations for the changes in revenues and expenses. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. Round answers to 2 decimal places, e.g. 52.75.) Liabilities + Stockholders' Equity Accts. Pay. + Rev. Exp.