Question
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
|
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.
|
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started