Problem 7-3A

On July 31, 2017, Wildhorse Co. had a cash balance per books of $6,290.00. The statement from Dakota State Bank on that date showed a balance of $7,840.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $18.00.
2.		The bank collected $1,670.00 for Wildhorse Co. through electronic funds transfer.
3.		The July 31 receipts of $1,350.30 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 $354.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $345.00.
5.		Checks outstanding on July 31 totaled $1,983.10.
6.		On July 31, the bank statement showed an NSF charge of $725.00 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.)

WILDHORSE CO. Bank Reconciliation choose the accounting period For the Month Ended July 31, 2017For the Year Ended July 31, 2017July 31, 2017
select an opening name for section one Outstanding checksBank service chargeCash balance per bank statementElectronic funds transfer receivedDeposits in transitError in recording check No. 2480Adjusted cash balance per bankNSF check					$enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item Outstanding checksNSF checkBank service chargeDeposits in transitElectronic funds transfer receivedAdjusted cash balance per bankError in recording check No. 2480Cash balance per bank statement				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess :	select a reconciling item NSF checkCash balance per bank statementAdjusted cash balance per bankBank service chargeError in recording check No. 2480Deposits in transitOutstanding checksElectronic funds transfer received				enter a dollar amount
select a closing name for section one Bank service chargeCash balance per bank statementAdjusted cash balance per bankNSF checkError in recording check No. 2480Deposits in transitElectronic funds transfer receivedOutstanding checks					$enter a total amount for the first section
select an opening name for section two Adjusted cash balance per booksElectronic funds transfer receivedNSF checkError in recording check No. 2480Bank service chargeCash balance per booksOutstanding checksDeposits in transit					$enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item Adjusted cash balance per booksNSF checkOutstanding checksCash balance per booksDeposits in transitElectronic funds transfer receivedError in recording check No. 2480Bank service charge				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess :
	select a reconciling item Adjusted cash balance per books Deposits in transit NSF check Outstanding checks Electronic funds transfer received Error in recording check No. 2480 Bank service charge Cash balance per books		$enter a dollar amount
	select a reconciling item Deposits in transit NSF check Error in recording check No. 2480 Bank service charge Outstanding checks Cash balance per books Electronic funds transfer received Adjusted cash balance per books		enter a dollar amount
	select a reconciling item Bank service charge Adjusted cash balance per books Outstanding checks Deposits in transit Error in recording check No. 2480 Electronic funds transfer received NSF check Cash balance per books		enter a dollar amount
					enter a subtotal of the three previous amounts
select a closing name for section two Cash balance per booksAdjusted cash balance per booksNSF checkDeposits in transitBank service chargeOutstanding checksElectronic funds transfer receivedError in recording check No. 2480					$enter a total amount for the second section

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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.	enter an account title to record electronic funds transfer received by bank	enter a debit amount	enter a credit amount
	enter an account title to record electronic funds transfer received by bank	enter a debit amount	enter a credit amount
	(To record electronic funds transfer received by bank)
31.	enter an account title To record NSF check	enter a debit amount	enter a credit amount
	enter an account title To record NSF check	enter a debit amount	enter a credit amount
	(To record NSF check)
31.	enter an account title for the adjusting entry to correct error in recording check	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry to correct error in recording check	enter a debit amount	enter a credit amount
	(To correct error in recording check)
31.	enter an account title to record bank service charge	enter a debit amount	enter a credit amount
	enter an account title to record bank service charge	enter a debit amount	enter a credit amount
	(To record bank service charge)