Question
On July 31, 2020, Thor Companys bank statement shows a cash balance of $9,710, but the general ledger shows a balance of $8,730. Further review
On July 31, 2020, Thor Companys bank statement shows a cash balance of $9,710, but the general ledger shows a balance of $8,730.
Further review of the bank statement and Thors company records reveals the following:
- Deposits outstanding: Deposited by Thor but not on the bank statement. $2,760
- Checks outstanding: Recorded by Thor but not on the bank statement. $3,930
- The bank included interest earned in Thors account. $20
- The bank statement shows an automatic withdrawal for July rent. $150
- The bank statement shows a bank service charge on July 31, 2020. $60
REQUIREMENT 1: Prepare a bank reconciliation as of July 31, 2020 for Thor Company.
REQUIREMENT 2: Prepare the necessary entries to adjust the balance of cash.
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
3rd Edition
0978727932, 978-0978727932
