Question

On July 31, 2020, Bramble Company had a cash balance per books of $6,063.40. The statement from Dakota State Bank on that date showed a balance of $7,742.50. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $25.
2.		The bank collected $1,710 for Keeds Company through electronic funds transfer.
3.		The July 31 receipts of $1,278.00 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4.		Company check No. 2480 issued to L. Taylor, a creditor, for $384 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $348.
5.		Checks outstanding on July 31 totaled $1,884.10.
6.		On July 31, the bank statement showed an NSF charge of $576 for a check received by the company from W. Krueger, a customer, on account.

(a)

Prepare the bank reconciliation as of July 31. (List items that increase cash balance first. Round answers to 2 decimal places, e.g., 1,245.25)

BRAMBLE COMPANY Bank Reconciliation
			$
					$
					$
					$

Answer 1

BRAMBLE COMPANY

Bank Reconciliation

Cash balance per books 6,063.40 Add: Items added to Bank but not Cash and deducted from cash but not Bank Bank collected through electronic funds transfer 1,710 Checks outstanding 1,884.10 3,594.10 Less: Items deducted from Bank but not Cash and added to cash but not Bank Bank service charge (25) Deposits in Transit (1,278 Payment to L. Taylor incorrectly recorded (36) NSF check (576) (1,915.00) Cash balance per the Bank 7,742.50

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BRAMBLE COMPANY

Bank Reconciliation

Cash balance per books 6,063.40 Add: Items added to Bank but not Cash Bank collected through electronic funds transfer 1,710 1,710.00 Less: Items deducted from Bank but not Cash Bank service charge (25) Payment to L. Taylor incorrectly recorded (36) NSF check (576) (637.00) Adjusted Balance to be written in Balance Sheet 7,134.40

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