Question

In: Accounting

quired information [The following information applies to the questions displayed below.] The following information is available...

quired information

[The following information applies to the questions displayed below.]

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  

  1. On July 31, the company’s Cash account has a $25,180 debit balance, but its July bank statement shows a $27,263 cash balance.
  2. Check No. 3031 for $1,400, Check No. 3065 for $476, and Check No. 3069 for $2,168 are outstanding checks as of July 31.
  3. Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260.
  4. The July bank statement shows the bank collected $9,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
  6. The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $10,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

  • Record the adjusting entry required, if any, related to the July 31 cash balance.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
a.
  • Record the adjusting entry required, if any, related to the outstanding checks.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
b.
  • Record the adjusting entry required, if any, related to Check No. 3056.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
c.
  • Record the adjusting entry required, if any, for the collection of the note by bank for Branch.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
d.
  • Record the adjusting entry required, if any, related to the NSF check.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
e.
  • Record the adjusting entry required, if any, related to bank service charges.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
f.
  • Record the adjusting entry required, if any, related to the July 31 deposit.

Note: Enter debits before credits.

Transaction General Journal Debit Credit
g.

Solutions

Expert Solution

Bank Reconciliation
Bank Statement balance 27,263 Book Balance 25,180
Add Add:
Deposit of July 31 10,632 Proceeds of note 9500
10,632 9,500
37,895 34,680
Deduct: Deduct:
check no 3031 1,400 NSF Check 805
check no 3065 476 Service Charge 14
check no 3069 2,168 Error (Check 3056) 10
4,044 829
Adjusted bank balance 33,851 33,851
Journal Entries
Date General Journal                                                       Debit Credit
31-Jul no entry for oustanding checks
31-Jul Rent expense 10
cash 10
31-Jul Cash 9,500
Note receivable 9,500
31-Jul Accounts receivable 805
cash 805
31-Jul Miscellaneous expense/service expense 14
cash 14
31-Jul no entry for deposits

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