Question

The following information pertains to Pharoah Company.

1.		Cash balance per bank, July 31, $7,588.
2.		July bank service charge not recorded by the depositor $45.
3.		Cash balance per books, July 31, $7,624.
4.		Deposits in transit, July 31, $2,960.
5.		$2,276 collected for Pharoah Company in July by the bank through electronic funds transfer. The collection has not been recorded by Pharoah Company.
6.		Outstanding checks, July 31, $693

Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.)

PHAROAH COMPANY Bank Reconciliation choose the accounting period                                                                      For the Month Ended July 31, 2017For the Year Ended July 31, 2017July 31, 2017
select an opening name for section one                                                                      Cash balance per bank statementOutstanding checksDeposits in transitElectronic funds transfer receivedBank service chargeAdjusted cash balance per bank			$enter a dollar amount
select between addition and deduction                                                                      LessAdd:	select a reconciling item                                                                      Adjusted cash balance per bankCash balance per bank statementOutstanding checksDeposits in transitElectronic funds transfer receivedBank service charge		enter a dollar amount
			enter a subtotal of the two previous amounts
select between addition and deduction                                                                      LessAdd:	select a reconciling item                                                                      Adjusted cash balance per bankBank service chargeDeposits in transitElectronic funds transfer receivedCash balance per bank statementOutstanding checks		enter a dollar amount
select a closing name for section one                                                                      Outstanding checksBank service chargeDeposits in transitAdjusted cash balance per bankElectronic funds transfer receivedCash balance per bank statement			$enter a total amount for the first section
select an opening name for section two                                                                      Bank service chargeOutstanding checksCash balance per booksAdjusted cash balance per booksDeposits in transitElectronic funds transfer received			$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Adjusted cash balance per booksElectronic funds transfer receivedDeposits in transitCash balance per booksOutstanding checksBank service charge		enter a dollar amount
			enter a subtotal for the two previous amounts
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Adjusted cash balance per booksElectronic funds transfer receivedBank service chargeDeposits in transitCash balance per booksOutstanding checks		enter a dollar amount
select a closing name for section two                                                                      Electronic funds transfer receivedOutstanding checksDeposits in transitCash balance per booksBank service chargeAdjusted cash balance per books			$enter a total amount for the second section

Answer 1

Bank Reconciliation Statement
For the month ended July 31, 2017
Cash Balance as per Bank Statement, July 31	7588
Add: Deposit in Transit	2960
	10548
Less: Outstanding Checks	693
Adjusted Cash Balance	9855
Cash Balance as per Books, July 31	7624
Add: Amount collected through EFT	2276
	9900
Less: Bank Service Charge	45
Adjusted Cash Balance	9855