Question

Problem 7-4A

On July 31, 2019, Keeds Company had a cash balance per books of $6,140.00. The statement from Dakota State Bank on that date showed a balance of $7,690.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $25.00.
2.		The bank collected $1,520 for Keeds Company through electronic funds transfer.
3.		The July 31 receipts of $1,193.30 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 as a cash payment on July 10 for $348.00.
5.		Checks outstanding on July 31 totaled $1,860.10.
6.		On July 31, the bank statement showed an NSF charge of $575.00 for a check received by the company from W. Krueger, a customer, on account.

Prepare the necessary adjusting entries at July 31. (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 on July 31	enter a debit amount	enter a credit amount
	enter an account title to record electronic funds transfer received by bank on July 31	enter a debit amount	enter a credit amount
	(To record electronic funds transfer received by bank)
31.	enter an account title to record NSF check on July 31	enter a debit amount	enter a credit amount
	enter an account title to record NSF check on July 31	enter a debit amount	enter a credit amount
	(To record NSF check)
31.	enter an account title to correct error in recording check on July 31	enter a debit amount	enter a credit amount
	enter an account title to correct error in recording check on July 31	enter a debit amount	enter a credit amount
	(To correct error in recording check)
31.	enter an account title to record bank service charge on July 31	enter a debit amount	enter a credit amount
	enter an account title to record bank service charge on July 31	enter a debit amount	enter a credit amount

Answer 1

Date	Account/ Description	Debit	Credit
July 31	Cash	1,520.00
	Accounts Receivable		1,520.00
	(To record electronic funds transfer received by bank)
July 31	Accounts Receivable	575.00
	Cash		575.00
	(To record NSF check)
July 31	Accounts Payable	36.00
	Cash		36.00
	(To correct error in recording check)
July 31	Bank Charges Expense	25.00
	Cash		25.00
	(To record bank service charges)