Question

The following information pertains to Cullumber Company.

1.		Cash balance per bank, July 31, $7,438.
2.		July bank service charge not recorded by the depositor $42.
3.		Cash balance per books, July 31, $7,474.
4.		Deposits in transit, July 31, $2,810.
5.		$2,126 collected for Cullumber Company in July by the bank through electronic funds transfer. The collection has not been recorded by Cullumber Company.
		6. Outstanding checks, July 31, $690. Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.)

Answer 1

Solution:

CULLUMBER COMPANY
Bank Reconciliation - July 31, 2017
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Cash Balance per Bank Statement	$7,438.00	Cash Balance as per cash books	$7,474.00
Additions:		Additions:
Deposits in transit	$2,810.00	EFT Collection	$2,126.00
Deductions:		Deductions:
Outstanding Checks	$690.00	Service Charge	$42.00
Adjusted Balance	$9,558.00	Adjusted Balance	$9,558.00