Question

The following information pertains to Crane Company.

1.		Cash balance per bank, July 31, $7,938.
2.		July bank service charge not recorded by the depositor $52.
3.		Cash balance per books, July 31, $7,974.
4.		Deposits in transit, July 31, $3,310.
5.		$2,626 collected for Crane Company in July by the bank through electronic funds transfer. The collection has not been recorded by Crane Company.
6.		Outstanding checks, July 31, $700.

(a)

• Your Answer
• Correct Answer

Partially correct answer iconYour answer is partially correct.

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

CRANE COMPANY Bank Reconciliation choose the accounting period                                                                      July 31, 2017For the Year Ended July 31, 2017For the Month Ended July 31, 2017
select an opening name for section one                                                                      Deposits in transitAdjusted cash balance per bankBank service chargeElectronic funds transfer receivedCash balance per bank statementOutstanding checks			$enter a dollar amount
select between addition and deduction                                                                      LessAdd:	select a reconciling item                                                                      Outstanding checksBank service chargeElectronic funds transfer receivedCash balance per bank statementDeposits in transitAdjusted cash balance per bank		enter a dollar amount
			enter a subtotal of the two previous amounts
select between addition and deduction                                                                      LessAdd:	select a reconciling item                                                                      Bank service chargeDeposits in transitOutstanding checksCash balance per bank statementElectronic funds transfer receivedAdjusted cash balance per bank		enter a dollar amount
select a closing name for section one                                                                      Outstanding checksCash balance per bank statementAdjusted cash balance per bankBank service chargeDeposits in transitElectronic funds transfer received			$enter a total amount for the first section
select an opening name for section two                                                                      Cash balance per booksBank service chargeAdjusted cash balance per booksOutstanding checksElectronic funds transfer receivedDeposits in transit			$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Electronic funds transfer receivedDeposits in transitAdjusted cash balance per booksBank service chargeCash balance per booksOutstanding checks		enter a dollar amount
			enter a subtotal for the two previous amounts
select between addition and deduction                                                                      LessAdd:	select a reconciling item                                                                      Adjusted cash balance per booksElectronic funds transfer receivedCash balance per booksOutstanding checksBank service chargeDeposits in transit		enter a dollar amount
select a closing name for section two                                                                      Deposits in transitOutstanding checksElectronic funds transfer receivedCash balance per booksAdjusted cash balance per booksBank service charge			$enter a total amount for the second section

eTextbook and Media

List of Accounts

  

Attempts: 3 of 3 used

(b)

Journalize the adjusting entries at July 31 on the books of Crane Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 31	enter an account title to record electronic funds transfer received by bank	enter a debit amount	enter a credit amount
	enter an account title to record electronic funds transfer received by bank	enter a debit amount	enter a credit amount
	(To record electronic funds transfer received by bank)
July 31	enter an account title to record bank service charge	enter a debit amount	enter a credit amount
	enter an account title to record bank service charge	enter a debit amount	enter a credit amount
	(To record bank service charge)

Answer 1

Bank Reconciliation Statement
balance as per bank		7938
Add: Deposits in transit	3310
			11248
Less: Outstanding checks	700
Adjusted balance as per bank	10548
Balance as per books	7974
Add: EfT collection		2626
			10600
Less: Service charges		52
Adjusted balance as per books	10548
Journal entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Cash account			2626
	Accounts receivable			2626
	(f0r EFT transfers)
b.	Misc. expenses			52
	Cash account				52
	(for service charges levied)