In: Accounting
Exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5)
Spielberg Company's general ledger shows a checking account balance of $22,910 on July 31, 2021. The July cash receipts of $1,825, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $49. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,400. The bank statement shows a balance of $22.436 on July 31.
Required:
1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)
2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1 | |||
Bank Reconciliation | |||
July 31,2021 | |||
Bank's Cash balance | Company's Cash balance | ||
Per bank statement | 22436 | Per general ledger | 22910 |
Deposits outstanding | 1825 | Service Fees | -49 |
Checks outstanding | -1400 | ||
Bank balance per reconciliation | 22861 | Company balance per reconciliation | 22861 |
2 | ||
1 | ||
General Journal | Debit | Credit |
No journal entry required | ||
2 | ||
General Journal | Debit | Credit |
Service fees expense | 49 | |
Cash | 49 |