Question

On July 31, 2022, Blossom Company had a cash balance per books of $6,295.00. The statement from Dakota State Bank on that date showed a balance of $7,845.80. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank service charge for July was $24.00.
2.		The bank collected $1,675.00 from a customer for Blossom Company through electronic funds transfer.
3.		The July 31 receipts of $1,349.30 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 $354.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $345.00.
5.		Checks outstanding on July 31 totaled $1,988.10.
6.		On July 31, the bank statement showed an NSF charge of $730.00 for a check received by the company from W. Krueger, a customer, on account.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.)

BLOSSOM COMPANY Bank Reconciliation choose the accounting period                                                                      July 31, 2022
select an opening name for section one                                                                      Cash Balance Per Bank Statement					7,845.80
select between addition and deduction Add:	select a reconciling item                                                                      Deposits in transit				1,349.30
					enter a subtotal of the two previous amounts
select between addition and deduction Less:	select a reconciling item Outstanding checks				-1,988.10
select a closing name for section one Adjusted Cash Balance Per Bank					$enter a total amount for the first section
select an opening name for section two Cash balance per books					6,295.00
select between addition and deduction   Add:	select a reconciling item Electronic funds transfer received				1,675
					enter a subtotal of the two previous amounts
select between addition and deduction Less:
	select a reconciling item Error in recording check No. 2480		enter a dollar amount
	select a reconciling item Bank service charge		enter a dollar amount
	select a reconciling item NSF check		enter a dollar amount
					enter a subtotal of the three previous amounts
select a closing name for section two Adjusted cash balance per books					enter a total amount for the second section

Answer 1

Solution:

Blossom Company
Bank Reconciliation Statement
July'31
Particulars		Amount
Balance on bank statement		$7,845.80
Additions:
Outstanding Deposits	$1,349.30
Total Additions		$1,349.30
Deductions:
Outstanding checks	$1,988.10
Total Deductions		$1,988.10
Adjusted bank balance		$7,207.00
Balance in books		$6,295.00
Additions:
EFT Collection	$1,675.00
Total Additions		$1,675.00
Deductions:
Incorrect recording of check no 2480	$9.00
Bank Service charges	$24.00
NSF Check	$730.00
Total Deductions		$763.00
Adjusted book balance		$7,207.00