Problem 7-3A

On July 31, 2017, Carla Vista Co. had a cash balance per books of $6,335.00. The statement from Dakota State Bank on that date showed a balance of $7,885.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $19.00.
2.		The bank collected $1,715.00 for Carla Vista Co. through electronic funds transfer.
3.		The July 31 receipts of $1,394.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.		Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00.
5.		Checks outstanding on July 31 totaled $2,046.10.
6.		On July 31, the bank statement showed an NSF charge of $770.00 for a check received by the company from W. Krueger, a customer, on account.

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.)

CARLA VISTA CO. Bank Reconciliation For the Month Ended July 31, 2017For the Year Ended July 31, 2017July 31, 2017
Cash balance per bank statementDeposits in transitAdjusted cash balance per bankBank service chargeOutstanding checksElectronic funds transfer receivedNSF checkError in recording check No. 2480					$
AddLess :	Adjusted cash balance per bankNSF checkOutstanding checksElectronic funds transfer receivedError in recording check No. 2480Bank service chargeCash balance per bank statementDeposits in transit
AddLess :	Cash balance per bank statementBank service chargeNSF checkAdjusted cash balance per bankDeposits in transitOutstanding checksElectronic funds transfer receivedError in recording check No. 2480
NSF checkError in recording check No. 2480Bank service chargeCash balance per bank statementAdjusted cash balance per bankDeposits in transitElectronic funds transfer receivedOutstanding checks					$
Cash balance per booksElectronic funds transfer receivedOutstanding checksDeposits in transitError in recording check No. 2480Bank service chargeNSF checkAdjusted cash balance per books					$
AddLess :	Error in recording check No. 2480Outstanding checksAdjusted cash balance per booksElectronic funds transfer receivedBank service chargeCash balance per booksNSF checkDeposits in transit
AddLess :
	NSF check Bank service charge Cash balance per books Adjusted cash balance per books Deposits in transit Outstanding checks Electronic funds transfer received Error in recording check No. 2480		$
	Bank service charge NSF check Electronic funds transfer received Error in recording check No. 2480 Cash balance per books Adjusted cash balance per books Deposits in transit Outstanding checks
	NSF check Electronic funds transfer received Deposits in transit Error in recording check No. 2480 Bank service charge Cash balance per books Adjusted cash balance per books Outstanding checks
Outstanding checksError in recording check No. 2480Bank service chargeCash balance per booksAdjusted cash balance per booksElectronic funds transfer receivedDeposits in transitNSF check					$

SHOW LIST OF ACCOUNTS
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Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date.	Account Titles and Explanation	Debit	Credit
July 31.
	(To record electronic funds transfer received by bank)
31.
	(To record NSF check)
31.
	(To correct error in recording check)
31.
	(To record bank service charge)