Question
Required information Problem 8-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 Skip to question [The following information applies to the questions displayed
Required information
Problem 8-4A (Algo) Preparing a bank reconciliation and recording entries LO P3
Skip to question
[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 $25,196 debit balance, but its July bank statement shows a $27,082 cash balance.
- Check Number 3031 for $1,320, Check Number 3065 for $436, and Check Number 3069 for $2,088 are outstanding checks as of July 31.
- Check Number 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270.
- The July bank statement shows the bank collected $7,500 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 $11 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
- Branchs July 31 daily cash receipts of $8,632 were placed in the banks night depository on that date but do not appear on the July 31 bank statement.
Problem 8-4A (Algo) 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started