3. Carter Inc. has the following information for July: Cash T-Account Balance, July 31 $8,069 Cash...

3. Carter Inc. has the following information for July:

Cash T-Account Balance, July 31 $8,069

Cash as per Bank Statement, July 31; $6,522

Deposits in Transit $3000

Service Charges $27

Outstanding Checks $550

Interest Earned on Account $30

EFT Accounts Receivable Collection from Customers $900

a.) Prepare a bank reconciliation dated July 31.

b.) Prepare any journal entries necessary to make the accounting records correct and complete.

c.) What amount of cash should be reported on the July 31 Balance Sheet?

Solutions

Expert Solution

Bank Reconciliation Statement
Balance as per bank Statement		6522	balance as per Books		8069
Add: Deposits in transit		3000	Add: Interest earned		30
			Add: EFT made		900
Sub-Total		9522	Sub-Total		8999
Less: Outstanding checks		550	Lss: Service charges		27

Adjusted balance of bank Statement		8972	Adjusted balance as per books		8972


Journal entries:
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Cash account		30
	Interest revenue			30

b.	Cash account		900
	Accounts receivable			900

c.	Misc. expenses		27
	Cash account			27


Cash balance to be reported in balance Sheet: $ 8972

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

A company has the following information. 1. Cash balance per bank, July 31, $7,328 2. July...

A company has the following information. 1. Cash balance per bank, July 31, $7,328 2. July bank service charge on bank statement, $40 3. Cash balance per company books, July 31, $7,280 4. Bank statement shows a Note Receivable of $2,000 plus $16 of interest was collected by the bank. 5. Outstanding checks, July 31, $772 6. Deposits in transit, July 31, $2,700 Compute the adjusted cash balance per company books. Do not enter a dollar sign or any commas.

The cash account for Stone Systems at July 31, 2016, indicated a balance of $17,750. The...

The cash account for Stone Systems at July 31, 2016, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: A. Checks outstanding totaled $17,865. B. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement. C. The bank had collected $6,095 on a...

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,640 debit balance, but its July bank statement shows a $26,661 cash balance. Check No. 3031 for $1,000 and Check No. 3040 for $492 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No....

At 31 July Ridley Pty Ltd has this bank information: cash balance as per bank $8420;...

At 31 July Ridley Pty Ltd has this bank information: cash balance as per bank $8420; unpresented cheques $862; outstanding deposits $2700; and a bank service charge $20. Determine the balance of the Cash at Bank account after any required adjustments. Prepare entry to replenish a petty cash fund. Please help me with this question

The following information is for Blossom Company: 1. Cash balance per bank, July 31, $8,836. 2....

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....

On 31 July, Brian Company’s Cash at Bank account had a credit balance of $4 647.50....

On 31 July, Brian Company’s Cash at Bank account had a credit balance of $4 647.50. The following information is made available by the company for you to prepare a bank reconciliation for July: Deposit in-transit 31 July amounted to $1 015.30. Outstanding cheques 31 July amounted to $530.00. The bank statement at the end of July indicated a debit balance of $2 000.00. The bank incorrectly deposited a $799.20 cheque of Bright Company against Brian’s bank account. A $10...

Chapter 7 lab The cash account for Stone Systems at July 31, 20Y5, indicated a balance...

Chapter 7 lab The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items: Checks outstanding totaled $17,865. A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement. The bank had collected $6,095 on a...

The following information pertains to Sheridan Video Company. 1. Cash balance per bank, July 31, $7,943....

The following information pertains to Sheridan Video Company. 1. Cash balance per bank, July 31, $7,943. 2. July bank service charge not recorded by the depositor $37. 3. Cash balance per books, July 31, $7,964. 4. Deposits in transit, July 31, $1,840. 5. Bank collected $1,240 note for Sheridan in July, plus interest $45, less fee $29. The collection has not been recorded by Sheridan, and no interest has been accrued. 6. Outstanding checks, July 31, $600.

The following information pertains to Ghose Company. 1. Cash balance per bank, July 31, $8,569. 2....

The following information pertains to Ghose Company. 1. Cash balance per bank, July 31, $8,569. 2. July bank service charge not recorded by the depositor $62. 3. Cash balance per books, July 31, $8,605. 4. Deposits in transit, July 31, $3,941. 5. Note for $3,241 collected for Ghose in July by the bank, plus interest $60 less fee $44. The collection has not been recorded by Ghose, and no interest has been accrued. 6. Outstanding checks, July 31, $710.

The following information pertains to Novak Corp.. 1. Cash balance per bank, July 31, $7,723. 2....

The following information pertains to Novak Corp.. 1. Cash balance per bank, July 31, $7,723. 2. July bank service charge not recorded by the depositor $34. 3. Cash balance per books, July 31, $7,744. 4. Deposits in transit, July 31, $1,730. 5. The bank collected $1,146 in July for Novak through electronic funds transfer. The collection has not been recorded by Novak. 6. Outstanding checks, July 31, $597. Prepare a bank reconciliation at July 31.

Subjects