Question

The following information pertains to Blue Spruce Corp.. 1. Cash balance per bank, July 31, $8,003. 2. July bank service charge not recorded by the depositor $36. 3. Cash balance per books, July 31, $8,024. 4. Deposits in transit, July 31, $1,870. 5. The bank collected $1,286 in July for Blue Spruce through electronic funds transfer. The collection has not been recorded by Blue Spruce. 6. Outstanding checks, July 31, $599.

Prepare a bank reconciliation at July 31.

Answer 1

Answer:

Blue Spruce Corp

Bank reconciliation Statement at July 31.

	Amount
Ending Bank balance at July 31	$       8,003
Add: Deposit in transit	$       1,870
Less: Outstanding cheques	$         -599
Adjusted Bank Balance	$       9,274
Ending Cash balance at July 31	$       8,024
Less: Bank serive charge not recorded	$           -36
Add: Collection not recorded	$       1,286
Adjusted Cash Balance	$       9,274

July bank service charge not recorded by the depositor $36.In order to get Adjusted cash balance we should deduct service charges from ending cash balance

Deposits in transit should add to ending bank balance in order to reach adjusted bank balance.

Collection not recorded in cash book. Should add to ending cash balance in order to reach adjusted cash balance.

Outstanding checks should deduct from ending bank balance in order to reach adjusted bank balance.