On July 31, 2020, Bonita Company had a cash balance per books of $6,154 75 The statement from Dakota State Bank on that date showed a balance of $7,752 25 A comparison of the bank statement with the Cash account revealed the following facts 1 The bank service charge for July was $25 2 The bank collected $1,620 for Keeds Company through electronic funds transfer 3 The July 31 receipts of $1,266 00 were not included in the bank deposits for July These receipts were deposited by the company in a night deposit vault on July 31 4 Company check No 2480 issued to L Taylor, a creditor, for $362 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $326 5 Checks outstanding on July 31 totaled $1,882 50 6 On July 31, the bank statement showed an NSF charge of $578 for a check received by the company from W Krueger, a customer, on account Prepare the bank reconciliation as of July 31 (List items that increase cash balance first Round answers to 2 decimal places, e g , 1,245 25) BONITA COMPANY Bank Reconciliation Prepare the necessary adjusting entries at July 31 Date Account Titles and Explanation Debit Credit July 31 (To record receipt of electronic funds transfer) July 31 (To record NSF check) July 31 (To correct error in recording check) July 31 (To record bank service charge)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 12, 2024

On July 31, 2020, Bonita Company had a cash balance per books of $6,154.75. The statement from Dakota State Bank on that date showed a

On July 31, 2020, Bonita Company had a cash balance per books of $6,154.75. The statement from Dakota State Bank on that date showed a balance of $7,752.25. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $25.
2.		The bank collected $1,620 for Keeds Company through electronic funds transfer.
3.		The July 31 receipts of $1,266.00 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.		Company check No. 2480 issued to L. Taylor, a creditor, for $362 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $326.
5.		Checks outstanding on July 31 totaled $1,882.50.
6.		On July 31, the bank statement showed an NSF charge of $578 for a check received by the company from W. Krueger, a customer, on account.

image text in transcribed

Prepare the bank reconciliation as of July 31. (List items that increase cash balance first. Round answers to 2 decimal places, e.g., 1,245.25) BONITA COMPANY Bank Reconciliation Prepare the necessary adjusting entries at July 31. Date Account Titles and Explanation Debit Credit July 31 (To record receipt of electronic funds transfer) July 31 (To record NSF check) July 31 (To correct error in recording check) July 31 (To record bank service charge)