Question
Topic #6 Problem On June 30, Tan Company's bank reconciliation showed a $400 deposit in transit and outstanding checks #1151, $440; #1153, $620; and #1155,
Topic #6 Problem On June 30, Tan Company's bank reconciliation showed a $400 deposit in transit and outstanding checks #1151, $440; #1153, $620; and #1155, $790. During the month of July, Tan Company recorded the following cash receipt and cash payment transactions in the general ledger: CASH Beg. Bal. 2,045 Receipts: Payments: 7/6 550 390 Ck #1160 7/13 840 610 Ck #1161 7/20 750 840 Ck #1162 7/27 960 115 Ck #1163 7/31 310 260 Ck #1164 End. Bal. 3,240 At the end of July, the following bank statement was received: Rainbow BANK 9999 Cloudy Skies Way Depositor Name: Tan Company For Period: July 1 through July 31 Account Number: 999-9999991 Monthly Summary: Beginning Balance, July 1 $3,495 Total Deposits and Other Credits 4,590 Total Checks Paid and Other Debits (2,270) Ending Balance, July 31 $5,815 Deposits Received: Other Credits: Date Amount Date Description Amount Jul 1 $400 July 15 Collection of a $1,000 note receivable plus $120 7 550 interest revenue less $30 bank transaction 14 840 fee $1,090 21 750 28 960 Checks Paid: Other Debits: Check No. Amount Date Description Amount 1151 $440 July 27 Non-Sufficient Funds check from depositor 1153 620 customer, C. Purple $210 1160 390 31 Monthly Service Charge on Account 15 1162 480 1163 115 During the reconciling process, it was determined that check #1162, correctly written for $480 for the purchase of equipment, was incorrectly journalized and posted as $840. REQUIRED: A. Prepare a bank reconciliation on July 31. B. Give the adjusting journal entries required on July 31. Tan Company Bank Reconciliation As of July 31 GENERAL JOURNAL Date Account Titles DR CR
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