OTHER HALF OF Question: PART 2

The following information is for Pharoah Company: 1. 2. 3. 4. 5. Cash balance per bank, July 31. $6,185. July bank service charge not recorded by the depositor, $17. The bank erroneously charged another company's $590 cheque against Pharoah's account. Cash balance per books, July 31, 67,379. The bank charged Pharoah's account $290 for a customer's NSF cheque. Deposits in transit, July 31, $1,850. Pharoah recorded a cash receipt for a cash sale from a customer as $32. The bank correctly recorded it as $23. The bank collected a $1,050 note for Pharoah in July, plus interest of $30, less a fee of $17. The collection has not been recorded by Pharoah and no interest has been accrued. Outstanding cheques, July 31, $499. 6. 7. mi 9. Your answer is partially correct. Prepare a bank reconciliation for July 31. (List items that increase balance as per bank & books first) PHAROAH COMPANY Bank Reconciliation July 31 Cash balance per bank statement $ 6185 Add Deposits in transit $ 1850 Bankerror 590 2440 8625 Less Outstanding cheques 499 Adjusted cash balance per bank 8126 Cash balance per books $ 7379 Add Collection of note receivable $ 1050 Collection of note receivable $ 1050 Collection of Interest revenue 30 1080 8459 Less Bank service charges 17 NSF cheque 290 Error on cash sales 316 Adjusted cash belance per books $ 8126 Your answer is partially correct. Journalize the adjusting entries for July 31 on the books of Pharoah Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit No. Account Titles and Explanation July Bank Charges Expense 17 31 Accounts Recevable 290 Sales 9 Cash 316 (To record the bank service charge, correct deposit error and NSF cheque) July 31 Cash 1063 Notes Recelvable 1080 Interest Revenue 30 (To record the collection of the note)