Problem 6-4A Preparing a bank reconciliation and recording adjustments LO P3

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The following information is available to reconcile Branch Companys book balance of cash with its bank statement cash balance as of July 31, 2017.

a. On July 31, the companys Cash account has a $25,644 debit balance, but its July bank statement shows a $28,485 cash balance.

b. Check No. 3031 for $1,720 and Check No. 3040 for $852 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 $636 and Check No. 3069 for $2,488, 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 expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.

d. The July bank statement shows the bank collected $5,500 cash on a noninterest-bearing note for Branch, deducted a $28 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.

e. The bank statement shows an $805 charge for 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. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.

g. Branchs July 31 daily cash receipts of $6,652 were placed in the banks night depository on that date but do not appear on the July 31 bank statement.

I cannot figure out what I am missing. Your help is greatly appreciated.

Answer is not complete. No Transaction General Journal Debit Credit No journal entry required No journal entry required Rent expense 10 C. Cash 10 Cash 5,472 Collection expense 28 Notes receivable 5,500 Accounts receivable -E. Shaw 805 > 805 Miscellaneous expenses Cash 7 No journal entry required