In: Accounting
Required information
Problem 8-4A Preparing a bank reconciliation and recording adjustments LO P3
[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, 2017.
Problem 8-4A Part 2
2. Prepare the journal entries necessary to
bring the company’s book balance of cash into conformity with the
reconciled cash balance as of July 31, 2017. (If no entry
is required for a transaction/event, select "No journal entry
required" in the first account field.)
BRANCH COMPANY | |||||
Bank Reconciliation | |||||
July 31, 2017 | |||||
Bank statement balance | 27664 | Book balance | 25646 | ||
Add: | Add: | ||||
Deposit of July 31 | 10152 | Proceeds of note less collection charge | 8955 | ||
10152 | 8955 | ||||
37816 | 34601 | ||||
Deduct: | Deduct: | ||||
Check No. 3031 | 1400 | NSF check including fee | 805 | ||
Check No. 3065 | 476 | Service charge | 14 | ||
Check No. 3069 | 2168 | Error (Check 3056) | 10 | ||
4044 | 829 | ||||
Adjusted bank balance | 33772 | Adjusted book balance | 33772 |
2 | |||
Transaction | General Journal | Debit | Credit |
a. | No journal entry required | ||
b. | No journal entry required | ||
c. | Rent expense | 10 | |
Cash | 10 | ||
d. | Cash | 8,955 | |
Collection expense | 45 | ||
Notes receivable | 9,000 | ||
e. | Accounts receivable—E. Shaw | 805 | |
Cash | 805 | ||
f. | Miscellaneous expenses | 14 | |
Cash | 14 | ||
g. | No journal entry required |