Question
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balar e as of July 31. a.
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balar e as of July 31. a. On July 31, the company's Cash account has a $25,560 debit balance, but its July bank statement shows a $27,946 cash balance. b. Check No. 3031 for $1,520, Check No. 3065 for $536, and Check No. 3069 for $2,288 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,240. d. 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. e. 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. f. 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. g. Branch's July 31 daily cash receipts of $8,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.. Required: 1. Prepare the bank reconciliation for this company as of July 31. Bank statement balance Add: BRANCH COMPANY Bank Reconciliation July 31 Book balance Add: Deduct 0 0 Deduct Adjusted bank balance Adjusted book balance S 0 0 Bank statement balance Add: Check No. 3031 Check No. 3040 Check No. 3065 Check No. 3069 Deposit of July 31 Error (Check 3056) Adjusted bank balance Bank statement balance Add: Deposit of July 31 Error (Check 3056) NSF check Proceeds from note Service charge Adjusted bank balance
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