Problem 6-4A Prepare a bank reconciliation and record adjustments LO P3

[The following information applies to the questions displayed below.]

The following information is available to reconcile Branch Companys book balance of cash with its bank statement cash balance as of July 31, 2013.

a.

On July 31, the companys Cash account has a $24,756 debit balance, but its July bank statement shows a $26,152 cash balance.

b.

Check No. 3031 for $1,150 and Check No. 3040 for $567 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $351 and Check No. 3069 for $1,918, both written in July, are not among the canceled checks on the July 31 statement.

c.

In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250.

d.

A credit memorandum enclosed with the July bank statement indicates the bank collected $8,500 cash on a non-interest-bearing note for Branch, deducted a $43 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.

e.

A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.

f.

Enclosed with the July statement is a $13 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g.

Branchs July 31 daily cash receipts of $9,652 were placed in the banks night depository on that date, but do not appear on the July 31 bank statement.

Date	General Journal	Debit	Credit
a. Prepare the adjusting entry required, if any, related to the July 31 cash balance.
b. Prepare the adjusting entry required, if any, related to the outstanding checks.
c. Prepare the adjusting entry required, if any, related to Check No. 3056.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $8,500 cash on a non-interest-bearing note for Branch, deducted a $43 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. Prepare the adjusting entry required, if any.
f. Enclosed with the July statement is a $13 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. Prepare the adjusting entry required, if any.
g. Branchs July 31 daily cash receipts of $9,652 were placed in the banks night depository on that date, but do not appear on the July 31 bank statement. Prepare the adjusting entry required, if any.

a. Prepare the adjusting entry required, if any, related to the July 31 cash balance.
b. Prepare the adjusting entry required, if any, related to the outstanding checks.
c. Prepare the adjusting entry required, if any, related to Check No. 3056.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $8,500 cash on a non-interest-bearing note for Branch, deducted a $43 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. Prepare the adjusting entry required, if any.
f. Enclosed with the July statement is a $13 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. Prepare the adjusting entry required, if any.
g. Branchs July 31 daily cash receipts of $9,652 were placed in the banks night depository on that date, but do not appear on the July 31 bank statement. Prepare the adjusting entry required, if any.

Problem 6-4A Part 1

Required:

1.

Prepare the bank reconciliation for this company as of July 31, 2013.

BRANCH COMPANY

Bank Reconciliation

July 31, 2013

Bank Statement Balance			Book Balance
Add:			Add:
Dedu			Deduct:
Adjusted Bank Balance		$	Adjusted Bank Balance		$