Question
Problem 6-4A (Static) Preparing a bank reconciliation and recording adjustments LO P3 [The following information applies to the questions displayed below.] The following information is
Problem 6-4A (Static) Preparing a bank reconciliation and recording 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.
- On July 31, the companys Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance.
- Check No. 3031 for $1,482, Check No. 3065 for $382, and Check No. 3069 for $2,281 are outstanding checks as of July 31.
- Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,250.
- The July bank statement shows the bank collected $7,955 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
- The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
- The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
- Branch's July 31 daily cash receipts of $11,514 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.
Problem 6-4A (Static) Part 1
Required: 1. Prepare the bank reconciliation for this company as of July 31.
Problem 6-4A (Static) Part 2
2. Prepare the journal entries necessary to make the companys book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (7 entries)
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