Question

Exercise 7-8 The following information pertains to Sandhill Company. 1. Cash balance per bank, July 31, $7,788. 2. July bank service charge not recorded by the depositor $49. 3. Cash balance per books, July 31, $7,824. 4. Deposits in transit, July 31, $3,160. 5. $2,476 collected for Sandhill Company in July by the bank through electronic funds transfer. The collection has not been recorded by Sandhill Company. 6. Outstanding checks, July 31, $697. Prepare a bank reconciliation at July 31, 2017. (List items that increase balance as per bank & books first.) SANDHILL COMPANY Bank Reconciliation $ : : $ $ : : $ SHOW LIST OF ACCOUNTS LINK TO TEXT Journalize the adjusting entries at July 31 on the books of Sandhill Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 31 (To record electronic funds transfer received by bank) July 31 (To record bank service charge) SHOW LIST OF ACCOUNTS LINK TO TEXT Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER

Answer 1

Bank reconciliation statement :

Balance as per bank statement	7788
Add: Deposits in transit	3160
	10948
Less: Outstanding checks	-697
Adjusted balance as per book	10251
Unadjusted balance as per cash book	7824
Add: Electronic fund transfer	2476
	10300
Less: Bank service charges	-49
Adjusted balance as per book	10251

Adjusting entry :

Date	account & explanation	debit	credit
July 31	Cash	2476
	Account receivable		2476
	(To record amount received)
July 31	Bank service charges	49
	cash		49
	(To record bank service fees)