Required information Problem 84A Preparing a bank reconcilia

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. a. On July 31, the company\'s Cash account has a $25,866 debit balance, but its July bank statement shows a $27,634 cash balance b. Check No. 3031 for $1,300 and Check No. 3040 for $642 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $426 and Check No. 3069 for $2,068, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230 d. The July bank statement shows the bank collected $9,000 cash on a noninterest-bearing note for Branch, e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had f. The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses g. Branch\'s July 31 daily cash receipts of $10,152 were placed in the bank\'s night depository on that date but do deducted a $45 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF because no previous notification had been received not appear on the July 31 bank statement.

Solution

Part 1

Branch company

Balance Reconciliation

July 31, 2017

Part 2

Bank statement balance		27634	book balance		25866
Add:			Add:
Deposit of July 31	10152		Proceeds of notes less collection charges	8955
		10512			8956
		37786			34821
Deduct :			Deduct :
Check no. 3031	1300		NSF Check including fee	805
Check no. 3065	426		Service charge	14
Check no. 3069	2068		Error (check no. 3056) (1240-1230)	10
		3794			829
Adjusted bank balance		33992	adjusted book balance		33992