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On July 31, 2022, Cullumber Company had a cash balance per books of $6,250.00. The statement from Dakota State Bank on that date showed a
On July 31, 2022, 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. The bank service charge for July was $20.00. 2. The bank collected $1,630.00 from a customer for Cullumber Company through electronic funds transfer. 3. 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. 4. 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 journal on July 10 for $349.00. 5. Checks outstanding on July 31 totaled $1,979.10. 6. 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. (a) Your answer is correct. Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 5,275.25.) CULLUMBER COMPANY Bank Reconciliation July 31, 2022 Cash balance per bank statement V $ 7800 Add Deposits in transit 130 9109 Less Outstanding checks 1979.10 Adjusted cash balance per bank $ Cash balance per books 6 Add Electronic funds transfer received 7 Less Bank service charge 20 i NSF check 685 i Error in recording check No. 2480 45 i 750 Adjusted cash balance per books $ 7 e Textbook and Media List of Accounts Attempts: 2 of 3 used (b) Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.25.) Date. Account Titles and Explanation Debit Credit July 31. (To record electronic funds transfer received by bank) 31. (To cord NSF ch 31. (To correct error in recording check) 31. (To record bank service charge)
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