Question

The following information is for Blossom Company:

1. Cash balance per bank, July 31, $8,836.

2. July bank service charge not recorded by the depositor, $28.

3. The bank erroneously charged another company’s $840 cheque against Blossom’s account.

4. Cash balance per books, July 31, $10,541.

5. The bank charged Blossom’s account $420 for a customer’s NSF cheque.

6. Deposits in transit, July 31, $2,640.

7. Blossom recorded a cash receipt for a cash sale from a customer as $32. The bank correctly recorded it as $23.

8. The bank collected a $1,500 note for Blossom in July, plus interest of $43, less a fee of $24. The collection has not been recorded by Blossom and no interest has been accrued.

9. Outstanding cheques, July 31, $713.

Prepare a bank reconciliation for July 31.

Answer 1

Blossom Company
Bank Reconciliation
July 31
Balance as per bank statement		$     8,836
Add: Deposit in transit	$   2,640
Add: bank erroneously charged another company’s check	$      840
		$     3,480
		$   12,316
Less: Outstanding checks		$        713
Adjusted bank balance		$   11,603
Balance as per company book		$   10,541
Add: Note collected by bank		$     1,519
		$   12,060
Less:
Bank service charge	$        28
NSF Check	$      420
Error in recording of cash receipt from sale (32-23)	$           9
		$        457
Adjusted book balance		$   11,603

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