Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 31,2024, Cullumber Company had a cash balance per books of $7,294.00. The statement from Canada Bank on that date showed a balance of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On July 31,2024, Cullumber Company had a cash balance per books of $7,294.00. The statement from Canada Bank on that date showed a balance of $7,800.00. A comparison of the bank statement with the Cash account revealed the following facts: 1. The bank service charge for July was $35.00. 2. The bank collected $1,640.00 of rental revenue for Cullumber Company throughelectronic 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 $2.450.00 was not included in the June bank statement. This amount was included in the July statement. 5. Company cheque No. 2480 issued to M. Harris, a creditor, for $365.00 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $356.00. 6. Cash sales of $865.00 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 $685.00. The bank detected the error on the deposit stip and credited Cullumber Company for the correct amount. 7. Cheques #2483 for $810.00,$2485 for $570.00, and #2488 for $370.00 were outstanding on July 31 . 8. On July 31, the bank statement showed an NSF charge of $800,00 for a cheque received by the company from H. Robinson, on account. Included in this amount was a $65.00 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 $980.00 that the bookkeeper Prepare the bank reconciliation as at July 31. (List items thot increase bolance as per bonk & bocks first. Round onswers to 2 decimal places, es. 52.75J Less v: On July 31,2024 . Cullumber Company had a cash balance per books of $7,294,00. The statement from Canada Bank on that date showed a balance of $7,800.00. A comparison of the bank statement with the Cash account revealed the following facts: 1. The bank service charge for July was $35.00. 2. The bank collected $1,640.00 of rental revenue for Cullumber 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 $2.450.00 was not included in the June bank statement. This amount was included in the July statement 5. Company cheque No. 2480 issued to M. Harris, a creditor, for $365.00 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $356.00. 6. Cash sales of $865.00 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 $685.00. The bank detected the error on the deposit slip and credited Cullumber Company for the correct amount. 7. Cheques $2483 for $810.00,#2485 for $570.00, and 42488 for $370.00 were outstanding on July 31 6. Cash sales of $865.00 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 $685.00. The bank detected the error on the deposit slip and credited Cullumber Company for the correct amount. 7. Cheques #2483 for $810.00,#2485 for $570.00, and \#2488 for $370.00 were outstanding on July 31 . 8. On July 31, the bank statement showed an NSF charge of $800.00 for a cheque received by the company from H. Robinson, on account. Included in this amount was a $65.00 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 $980.00 that the bookkeeper forgot to record. (a) Prepare the bank reconciliation as at July 31. (Ust items that increase balance as per bank \& books first. Round answers to 2 decimal ploces, es. 52.75.) CULLUMBER COMPANY Bank Reconciliation July 31,2024 Cash balance per bank statement Adjusted cash balance per bank Aankservice charge Cashbalance per bank statemeat Collection of EFT Rent Revenive Collection of Note Receivable Depost in transit EFT payment for Insurance Expensa Erroe in deposit Errorin recosding cheque Na 2480 for Accounts Paysale Error in recording cheque No. 2485 for Accounts Pyyable NST cheque Outstandinis chegues Carhbalance per books 5 CULLUMBER COMPANY Bank Reconciliation July 31,2024 Cash balance per bank statement Add v: Deposit in transit Less : Outstanding cheques Adiuted caxh balance per bark Cashbalance per bonios 5 Add v : les v: 5 Adrusted cash balance per books eTextbook and Media List of Accounts Sive for later Last saved 1 second ago Sived work will be auto-submitted on the due date. Autosubmission can take up to 10 minutes. Question 2 of 2 List of Accounts Accounts Payable Accounts Receivable Advertising Expense Bank Charges Expense Cash Cash Over and Short Credit Card Expense Debit Card Expense Delivery Expense Entertainment Expense Equipment Freight Out Question 2 of 2 Interest Expense Interest Revenue Merchandise inventory Miscellaneous Expense Mort lge Payable NoEntry Notes Payable Notes Receivable Office Expense. Owner's Drawings Petty Cash Postage Expense Rent Expense Chapter 7 Homework Assignment Question 2 of 2 Petty Cash Postage Expense Rent Expense Repairs Expense Sales Supplies Supplies Expense Telephone Expense Travel Expense

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

Auditing Integrated Concepts And Procedures

Authors: Donald H. Taylor, G. William Glezen

5th Edition

0471524239, 978-0471524236

More Books

Students also viewed these Accounting questions

Question

What abilities are possible because humans use symbols?

Answered: 1 week ago