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Prepare a bank reconciliation and adjusting entries . (SO 7) P8-5A Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected

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

P8-5A Haverman 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

Per Bank

Balance, July 1

$17,600

$16,800

July receipts

81,400

July credits

82,470

July disbursements

77,150

July debits

_______

74,756

Balance, July 31

$21,850

$24,514

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 $25,354

Instructions

Prepare a bank reconciliation at July 31.

Journalize the adjusting entries to be made by Haverman Company at

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

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