Question

Problem 7-03A (Part Level Submission)

On July 31, 2022, Sandhill Co. had a cash balance per books of $6,285.00. The statement from Dakota State Bank on that date showed a balance of $7,835.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $17.00.
2.		The bank collected $1,665.00 from a customer for Sandhill Co. through electronic funds transfer.
3.		The July 31 receipts of $1,346.30 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 $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348.00.
5.		Checks outstanding on July 31 totaled $2,005.10.
6.		On July 31, the bank statement showed an NSF charge of $720.00 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 balance as per bank & books first.)

SANDHILL CO. Bank Reconciliation choose the accounting period For the Year Ended July 31, 2022For the Month Ended July 31, 2022July 31, 2022
select an opening name for section one Error in recording check No. 2480Electronic funds transfer receivedBank service chargeDeposits in transitOutstanding checksCash balance per bank statementNSF checkAdjusted cash balance per bank					$enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item Error in recording check No. 2480Bank service chargeOutstanding checksElectronic funds transfer receivedNSF checkCash balance per bank statementAdjusted cash balance per bankDeposits in transit				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess :	select a reconciling item NSF checkOutstanding checksElectronic funds transfer receivedError in recording check No. 2480Deposits in transitBank service chargeCash balance per bank statementAdjusted cash balance per bank				enter a dollar amount
select a closing name for section one Deposits in transitBank service chargeOutstanding checksAdjusted cash balance per bankElectronic funds transfer receivedCash balance per bank statementNSF checkError in recording check No. 2480					$enter a total amount for the first section
select an opening name for section two Cash balance per booksError in recording check No. 2480Electronic funds transfer receivedBank service chargeAdjusted cash balance per booksNSF checkDeposits in transitOutstanding checks					$enter a dollar amount
select between addition and deduction AddLess :	select a reconciling item NSF checkBank service chargeOutstanding checksElectronic funds transfer receivedError in recording check No. 2480Adjusted cash balance per booksCash balance per booksDeposits in transit				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction AddLess :
	select a reconciling item     NSF check    Deposits in transit    Cash balance per books    Adjusted cash balance per books    Error in recording check No. 2480    Bank service charge    Outstanding checks    Electronic funds transfer received		$enter a dollar amount
	select a reconciling item     Bank service charge    Electronic funds transfer received    Outstanding checks    Cash balance per books    Deposits in transit    NSF check    Error in recording check No. 2480    Adjusted cash balance per books		enter a dollar amount
	select a reconciling item     Error in recording check No. 2480    Deposits in transit    Adjusted cash balance per books    Outstanding checks    Electronic funds transfer received    NSF check    Bank service charge    Cash balance per books		enter a dollar amount
					enter a subtotal of the three previous amounts
select a closing name for section two Error in recording check No. 2480Bank service chargeCash balance per booksDeposits in transitOutstanding checksElectronic funds transfer receivedNSF checkAdjusted cash balance per books					$enter a total amount for the second section

Answer 1

Sandhill Co.
Bank Reconciliation Statement
Jul-31
Unadjusted bank balance		7,835.80
Add: Deposit in Transit		1,346.30
		9,182.10
Less: Outstanding checks		2,005.10
Adjusted bank Balance		7,177.00
Unadjusted cash balance		6,285.00
Add: EFT Collection		1,665.00
		7,950.00
Less:
NSF Check	720.00
Error in check 2480	36.00
Bank Service Charge	17.00
		773.00
Adjusted Cash Balance		7,177.00