Question

answer part 1 and 2

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 $25,348 debit balance, but its July bank statement shows a $26,912 cash balance b. Check No. 3031 for $1,190, Check No. 3065 for $371, and Check No. 3069 for $1,958 are outstanding checks as of July 31 c. Check No. 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270. d. The July bank statement shows the bank collected $5,500 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. f. The July statement shows a $8 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 $6,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.

part 2

Answer 1

Requirement (1) Requirement (2) Transaction General Journal 1 NO Journal Entry Required Debit Credit $ $ 25,348 2 NO Journal Entry Required Bank Statement Balance Add : Deposit of July 31 $ 6,632 $ 5,500 3 Rent Expense To Cash $ 10.00 5,500 $ 10.00 $ $ BRANCH COMPANY Bank Reconciation July 31. 26,912 Book Balance Add Proceeds of note less colection charges 6,632 33,544 Deduct: NSF Check including fee Service charge Error Check 3056 3,519 30,025 Adjusted Book Balance $ $ 30,848 (To Record the Adjusting entry related to check no 3056) Deduct: Check no 3031 Check no 3065 Check no 3069 $ $ $ 1,190 371 1,958 $ $ $ 805 8 10 $ $ Cash To Notes Receivable $5,500.00 $5,500.00 Adjusted Bank Balance $ $ 823 30,025 (To Record adjusting entry related to Non interest bearing note) 5 Accounts Receivable - Eshaw To Cash $ 805.00 $ 805.00 (To Record adjusting entry related to NSF check) 6 Miscellaneous Expense To Cash $ 8.00 $ 8.00 (To Record entry related to Service charge) 7 NO Journal Entry Required