Question

Required information [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. a. On July 31, the company's Cash account has a $25,486 debit balance, but its July bank statement shows a $28,221 cash balance b. Check No. 3031 for $1,660, Check No. 3065 for $606, and Check No. 3069 for $2,428 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1.270 but was erroneously entered in the accounting records as $1,260. d. The July bank statement shows the bank collected $8,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. 1. The July statement shows a $12 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $9,132 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.

Answer 1

BRANCH COMPANY
Bank Reconciliation
July 31
Bank statement balance		28221	Book balance		25486
Add:			Add:
Deposit of July 31	9132		Proceeds of note	8000
		9132			8000
		37353			33486
Deduct:			Deduct:
Check No. 3031	1660		NSF check including fee	805
Check No. 3065	606		Service charge	12
Check No. 3069	2428		Error (Check 3056)	10
		4694			827
Adjusted bank balance		32659	Adjusted book balance		32659