Question

Required information Problem 6-4A Preparing a bank reconciliation and recording adjustments LO P3 (The following information applies to the questions displayed below. points The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. eBook References a. On July 31, the company's Cash account has a $25,638 debit balance, but its July bank statement shows a $27.896 cash balance b. Check No. 3031 for $1.470. Check No. 3065 for $511, and Check No. 3069 for $2.238 are outstanding checks as of July 31. c. Check No. 3056 for July rent expense was correctly written and drawn for $1.260 but was erroneously entered in the accounting records as $1.250. d. The July bank statement shows the bank collected $9.500 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 $14 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 $10,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement. Problem 6-4A Part 1

Answer 1

BRANCH COMPANY Bank Reconciliatin, July 31 27,896 Book balance Add: Bank statement balance Add: $ 25,638 $ 9,500 $10,632 Collection of Note Deposit in transit $ 10,632 $ 9,500 38,528 $ 35,138 Deduct: Deduct: ($1,260 $1,250) Outstanding checks: Error in recording Check No. 3056 10 $ 1,470 NFS check $ #3031 805 Bank service charge 511 # 3065 14 $ 2,238 # 3069 $ 4,219 $ 829 $ 34,309 Adjusted book balance Adjusted bank balance 34,309

Journal Entries Transaction Account Title and Explanation Debit Credit No journal enrty requied a No journal enrty requied b Rent Expense $ 10 Cash 10 (To record adjusting enrty for check no. 3056) Cash 9,500 Note Receivable 9,500 (To record collection of a note) Accounts Receivable 805 e $ Cash 805 (To record NSF check) Miscellaneous Expense f 14 $ Cash 14. (To record bank service charges) No journal enrty requied bol