On July 31, Blossom Ltd had a cash balance of $12,944 in its general ledger The bank statement from the Caisse Populaire on that date showed a balance of $21,830 A comparison of the bank statement with the Cash account revealed the following 1 The bank statement included service charges and credit card fees of $119 2 The bank statement included electronic collections from customers on account totalling $5,275 Blossom had not recorded the EFT 3 A deposit of $3,115 made by another company was incorrectly added to Blossoms account by the Caisse Populaire 4 Salaries of $4,205 were paid electronically during the month The company has already recorded these 5 Cheques outstanding on June 30 totalled $2,756 Of these, $2,141 worth cleared the bank in July All cheques written in July cleared the bank in July Prepare any journal entries required from the reconciliation (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Prepare the bank reconciliation at July 31 (List items that increase balance as per bank books first ) BLOSSOM LTD Bank Reconciliation July 31 A Debit Credit Date Account Titles and Explanation July 31 (To record EFT collections) (To record bank service charge)

Question

On July 31, Blossom Ltd  had a cash balance of $12,944 in its general ledger  The bank statement from the Caisse Populaire on that date showed a balance of $21,830  A comparison of the bank statement with the Cash account revealed the following  1  The bank statement included service charges and credit card fees of $119  2  The bank statement included electronic collections from customers on account totalling $5,275  Blossom had not recorded the EFT  3  A deposit of $3,115 made by another company was incorrectly added to Blossoms account by the Caisse Populaire  4  Salaries of $4,205 were paid electronically during the month  The company has already recorded these  5  Cheques outstanding on June 30 totalled $2,756  Of these, $2,141 worth cleared the bank in July  All cheques written in July cleared the bank in July  Prepare any journal entries required from the reconciliation  (Credit account titles are automatically indented when the amount is entered  Do not indent manually  If no entry is required, select  No Entry  for the account titles and enter 0 for the amounts ) Prepare the bank reconciliation at July 31  (List items that increase balance as per bank   books first ) BLOSSOM LTD  Bank Reconciliation July 31 A Debit Credit Date Account Titles and Explanation July 31 (To record EFT collections) (To record bank service charge)

Accepted Answer

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1.		The bank statement included service charges and credit card fees of $119.
2.		The bank statement included electronic collections from customers on account totalling $5,275. Blossom had not recorded the EFT.
3.		A deposit of $3,115 made by another company was incorrectly added to Blossoms account by the Caisse Populaire.
4.		Salaries of $4,205 were paid electronically during the month. The company has already recorded these.
5.		Cheques outstanding on June 30 totalled $2,756. Of these, $2,141 worth cleared the bank in July. All cheques written in July cleared the bank in July.

Question

On July 31, Blossom Ltd. had a cash balance of $12,944 in its general ledger. The bank statement from the Caisse Populaire on that date

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