The accountant of ABC has collected the following information for the month of July 2019. ABC’s bank statement for July 2019 shows the following data: Balance on 1 July as per bank $29,500 Balance on 31 July as per bank $15,907.45 The cash balance as per company records as of July 31 is $11,589.45. Further review of the data reveals the following information: Errors: Check no115 for $1,226. The bank correctly paid the amount, but ABC recorded the check as $1,262. Outstanding checks on July 31, total $5,904 Deposits in transit on July 31 total $2,201.40 Bank statement shows: A. Debit-NSF check: $425.60 B. Debit-bank fee $30 C. Credit- collection of note receivable for $1,000 plus interest earned $50 and bank collection fee $15. Required: Prepare bank reconciliation on July 31, 2019.
The accountant of ABC has collected the following information for the month of July 2019. ABC’s bank statement for July 2019 shows the following data: Balance on 1 July as per bank $29,500 Balance on 31 July as per bank $15,907.45 The cash balance as per company records as of July 31 is $11,589.45. Further review of the data reveals the following information: Errors: Check no115 for $1,226. The bank correctly paid the amount, but ABC recorded the check as $1,262. Outstanding checks on July 31, total $5,904 Deposits in transit on July 31 total $2,201.40 Bank statement shows: A. Debit-NSF check: $425.60 B. Debit-bank fee $30 C. Credit- collection of note receivable for $1,000 plus interest earned $50 and bank collection fee $15. Required: Prepare bank reconciliation on July 31, 2019.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 19E
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Question
The accountant of ABC has collected the following information for the month of July 2019.
ABC’s bank statement for July 2019 shows the following data:
|
Balance on 1 July as per bank |
$29,500 |
|
Balance on 31 July as per bank |
$15,907.45 |
The cash balance as per company records as of July 31 is $11,589.45. Further review of the data reveals the following information:
- Errors: Check no115 for $1,226. The bank correctly paid the amount, but ABC recorded the check as $1,262.
- Outstanding checks on July 31, total $5,904
- Deposits in transit on July 31 total $2,201.40
- Bank statement shows:
A. Debit-NSF check: $425.60
B. Debit-bank fee $30
C. Credit- collection of note receivable for $1,000 plus interest earned $50 and bank collection fee $15.
Required:
Prepare bank reconciliation on July 31, 2019.
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