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 $25,630 debit balance, but its July bank statement shows a $28,044 cash balance. b. Check No. 3031 for $1,530, Check No. 3065 for $541, and Check No. 3069 for $2,298 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 $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.

Answer 1

				Bank Reconciliation
Bank Statement balance				28,044	Book Balance					25,630
Add					Add:
Deposit of July 31			6,632		Proceeds of note less collection charge				5500
				6,632						5,500
				34,676						31,130
Deduct:					Deduct:
check no 3031			1,530		NSF Check				805
check no 3065			541		Service Charge				8
check no 3069			2,298		Error (Check 3056)				10
				4,369						823
Adjusted bank balance				30,307						30,307