Question

In: Accounting

On July 31, 2022, Pharoah Company had a cash balance per books of $6,320.00. The statement...

On July 31, 2022, Pharoah Company had a cash balance per books of $6,320.00. The statement from Dakota State Bank on that dat

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) PHAROAH COMPANY

Prepare the necessary adjusting entries at July 31. (Credit account titles are automatically indented when amount is entered.

On July 31, 2022, Pharoah Company had a cash balance per books of $6,320.00. The statement from Dakota State Bank on that date showed a balance of $7.870.80. A comparison of the bank statement with the Cash account revealed the following facts.

 1. The bank service charge for July was $21.00.

 2. The bank collected $1,700.00 from a customer for Pharoah Company through electronic funds transfer.

 3. The July 31 receipts of $1,377.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.

 4. Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00.

 5. Checks outstanding on July 31 totaled $2,031.10.

 6. On July 31, the bank statement showed an NSF charge of $755.00 for a check received by the company from W. Krueger, a customer, on account.

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.) 

Solutions

Expert Solution

Journal entry

Date General Journal Debit Credit
July 31 Cash 1700
Account receivable 1700
(To record electronic fund transfer received)
July 31 Account receivable 755
Cash 755
(To record NSF Check)
July 31 Account payable 27
Cash 27
(To correct error in recording check)
July 31 Bank Service charge 21
Cash 21
(To record bank service charge)

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