Question

Exercise 7-11 (Part Level Submission)

The following information pertains to Sandhill Company.

1.		Cash balance per bank, July 31, $10,614.
2.		July bank service charge not recorded by the depositor $61.
3.		Cash balance per books, July 31, $10,736.
4.		Deposits in transit, July 31, $4,331.
5.		$2,440 collected for Sandhill Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Sandhill Company.
6.		Outstanding checks, July 31, $1,830.

(a)

Prepare a bank reconciliation at July 31, 2022. (List items that increase balance as per bank & books first.)

SANDHILL COMPANY Bank Reconciliation Choose the accounting period For the Year Ended July 31, 2022July 31, 2022For the Month Ended July 31, 2022
Select an opening section 1 name Outstanding checksElectronic funds transfer receivedBank service chargeCash balance per bank statementAdjusted cash balance per bankDeposits in transit			$Enter a dollar amount
Select between addition and deduction AddLess :	Select a reconciling item Electronic funds transfer receivedCash balance per bank statementAdjusted cash balance per bankDeposits in transitOutstanding checksBank service charge		Enter a dollar amount
			Enter a subtotal of the two previous amounts
Select between addition and deduction LessAdd :	Select a reconciling item Outstanding checksBank service chargeDeposits in transitElectronic funds transfer receivedCash balance per bank statementAdjusted cash balance per bank		Enter a dollar amount
Select a closing section 1 name Deposits in transitOutstanding checksBank service chargeAdjusted cash balance per bankElectronic funds transfer receivedCash balance per bank statement			$Enter a total amount for section one
Select an opening section 2 name Bank service chargeCash balance per booksAdjusted cash balance per booksDeposits in transitOutstanding checksElectronic funds transfer received			$Enter a dollar amount
Select between addition and deduction AddLess :	Select a reconciling item Electronic funds transfer receivedAdjusted cash balance per booksDeposits in transitBank service chargeOutstanding checksCash balance per books		Enter a dollar amount
			Enter a subtotal of the two previous amounts
Select between addition and deduction AddLess :	Select a reconciling item Deposits in transitAdjusted cash balance per booksOutstanding checksBank service chargeElectronic funds transfer receivedCash balance per books		Enter a dollar amount
Select a closing section 2 name Electronic funds transfer receivedAdjusted cash balance per booksBank service chargeCash balance per booksDeposits in transitOutstanding checks			$Enter a total amount for section two

Answer 1

Sandhill Co.
Bank Reconciliation Statement
Jul-31
Unadjusted bank balance		10,614.00
Add: Deposit in Transit		4,331.00
		14,945.00
Less: Outstanding checks		1,830.00
Adjusted bank Balance		13,115.00
Unadjusted cash balance		10,736.00
Add: EFT Collection		2,440.00
		13,176.00
Less:
Bank Service Charge	61.00
		61.00
Adjusted Cash Balance		13,115.00