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The bank statement for Hunt Company for July 31, 2006, indicates a balance of $14,422. After arranging the months cancelled cheques in numerical order and
The bank statement for Hunt Company for July 31, 2006, indicates a balance of $14,422. After arranging the months cancelled cheques in numerical order and examining the bank statement, Hunts accountant notes the following: 1. A deposit of $3,100 on July 31 was not shown on the bank statement. 2. The following cheques are outstanding: Cheque # Amount 00625 $326 00631 $426 00634 $185 3. Cheque # 00627 was voided at the time it was written. 4. The banks service charge for the month is $7. 5. Joy Co., a regular customer, made a direct deposit of $3,200. 6. A transfer (based on standing order instructions) of $425 was made out of Hunts bank account into the bank account of SureCash Insurance Co. for payment of Hunts fire insurance premium. 7. The bank paid interest of $60 on Hunts average balance. 8. Cheque # 00630 for Thelma Jones wages was recorded in the accounting records as $240 instead of the correct amount, $420. 9. The cash account in the general ledger shows a balance on July 31 of $13,937 Required: a) Prepare a bank reconciliation for July. b) What balance for cash should be reflected on the Balance Sheet for July? c) Journalize the entries that should be made by Hunt Company
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