Question

The following information is available to re

The following Information is available to reconcile Clark Company's book balance of cash with its bank! statement cash balance as of July 31, 2011. a. On July 31, the company's Cash account has a $25,866 debit balance, but its July bank statement shows a $28,509 cash balance. b. Check No. 3031 for $1,650 and Check No. 3040 for $817 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 $601 and Check No. 3069 for $2,418, both written in July, are not among the canceled checks on the July 31 statement. 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 was correctly written and drawn for $1,230 but was erroneously entered in the accounting records as $1,220. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. Clark's July 31 daily cash receipts of $10,152 were placed in the bank's night depository on that date, but do not appear on the July 31 bank statement.

Answer 1

CLARK COMPANY
Bank Reconciliation
July 31, 2011
Bank statement balance		28509	Book balance		25866
Add:			Add:
Deposit of July 31		10152	Proceeds of note less collection charge		8955
		38661			34821
Deduct:			Deduct:
Check No. 3031	1650		NSF check including fee	805
Check No. 3065	601		Service charge	14
Check No. 3069	2418	4669	Error (Check 3056)	10	829
Adjusted bank balance		33992	Adjusted book balance		33992