Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 31, 2024, Sandhill Company had a cash balance per books of $7,288.00. The statement from Canada Bank on that date showed a balance

image text in transcribed
On July 31, 2024, Sandhill Company had a cash balance per books of $7,288.00. The statement from Canada Bank on that date showed a balance of $7,750.00. A comparison of the bank statement with the Cash account revealed the following facts: 1. The bank service charge for July was $25.00. 2. The bank collected $1,610.00 of rental revenue for Sandhill Company through electronic funds transfer. 3. The July 31 receipts of $1,240.00 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. The June 30 deposit of $2,390.00 was not included in the June bank statement. This amountras included in the July statement. 5. Company cheque No. 2480 issued to M. Walker, a creditor, for $381.00 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $318.00. 6. Cash sales of $853.00 on July 28 were deposited in the bank. The journal entry to record the cash receipt and the deposit slip were incorrectly made out and recorded by the bookkeeper as $583.00. The bank detected the error on the deposit slip and credited Sandhill Company for the correct amount. 7. Cheques \#2483 for $810.00, \#2485 for $560.00, and #2488 for $360.00 were outstanding on July 31 . 8. On July 31, the bank statement showed an NSF charge of $820.00 for a cheque received by the company from H. Allen, on account. Included in this amount was a $80.00 service charge. The company policy is to bill the service charge back to the customer. 9. Payment of the monthly insurance was made using a monthly scheduled EFT payment for $1,000.00 that the bookkeeper forgot to record. (a) Prepare the bank reconciliation as at July 31. (List items that increase balance as per bank \& books first. Round answers to 2 decimal places, eg. 52.75.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Robert Meigs Jan Williams, Sue Haka, Mark S Bettner

16th Edition

0077557344, 978-0077557348

More Books

Students also viewed these Accounting questions