In: Accounting
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.
a .Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31.
b. Prepare the bank reconciliation for this company as of July
31.
c. Prepare the journal entries necessary to make the company’s book
balance of cash equal to the reconciled cash balance as of July
31.
BRANCH COMPANY |
Bank Reconciliation |
July 31 |
Bank statement balance | $27,850 | Book balance | $24,836 | ||
Add: | Add: | ||||
Deposit of July 31 | $6,632 | Proceeds of note less collection charge | $5,500 | ||
6,632 | 5,500 | ||||
34,482 | 30,336 | ||||
Deduct: | Deduct: | ||||
Check No. 3031 | 1,770 | NSF check including fee | 805 | ||
Check No. 3065 | 661 | Service charge | 8 | ||
Check No. 3069 | 2,538 | Error (Check 3056) | 10 | ||
4,969 | 823 | ||||
Adjusted bank balance | $29,513 | Adjusted book balance | $29,513 |
Date | General Journal | Debit | Credit |
July 31 | Rent expense | 10 | |
Cash | 10 | ||
July 31 | Cash | 5,500 | |
Notes receivable | 5,500 | ||
July 31 | Accounts receivable—E. Shaw | 805 | |
Cash | 805 | ||
July 31 | Miscellaneous expenses | 8 | |
Cash | 8 |