Question

The following information pertains to Wildhorse Company.

1. Cash balance per bank, July 31, $10,788.

2. July bank service charge not recorded by the depositor $62.

3. Cash balance per books, July 31, $10,912.

4. Deposits in transit, July 31, $4,402.

5. $2,480 collected for Wildhorse Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Wildhorse Company.

6. Outstanding checks, July 31, $1,860.

Answer 1

	Bank Reconciliation
	Cash balance per bank statement				$ 10,788.00
Add:	Deposit in transit				$   4,402.00
					$ 15,190.00
Less:	Outstanding checks				$ (1,860.00)
	Adjusted cash balance per bank				$ 13,330.00
	Cash balance per books				$ 10,912.00
Add:	Electronic funds transfer received				$   2,480.00
					$ 13,392.00
Less:	Bank service charge				$       (62.00)
	Adjusted cash balance per bank				$ 13,330.00