Prepare a bank reconciliation and adjusting entries. (SO 7)

P8-5AHaverman Company maintains a checking account at the Commerce Bank.At July 31, selected data from the ledger balance and the bank statement are shown below.

Cash in Bank

Per Books

$17,600 Balance July 1st

81,400 July receipts

77,150 July disbursements

_______

$21,850 Adjusted Balance July 31st

Per Bank

$16,800 Balance July 1st

82,470 July credits

74,756 July debits

$24,514 Adjusted balance July 31st

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70.The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printer additional company checks.

You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320.(2) A salary check to an employee for $255 was recorde3d by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items:deposits in transit $7,000 and outstanding checks for $6,200.

(a) Adjusted balance per books is $25,354

Instructions

(a)bank reconciliation at July 31.

(b)Journalize the adjusting entries to be made by Haverman Company at

July 31. Assume that interest on the note has not been accrued.

Which way do both cash and book balances equal $25,354?