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?

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

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