Required information
[The following information applies to the questions
displayed below.]
The following information is available to reconcile Branch
Company’s book balance of cash with its bank statement cash balance
as of July 31.
- On July 31, the company’s Cash account has a $25,644 debit
balance, but its July bank statement shows a $28,484 cash
balance.
- Check No. 3031 for $1,730 and Check No. 3040 for $857 were
outstanding on the June 30 bank reconciliation. Check No. 3040 is
listed with the July canceled checks, but Check No. 3031 is not.
Also, Check No. 3065 for $641 and Check No. 3069 for $2,498, both
written in July, are not among the canceled checks on the July 31
statement.
- In comparing the canceled checks on the bank statement with the
entries in the accounting records, it is found that Check No. 3056
for July rent expense was correctly written and drawn for $1,280
but was erroneously entered in the accounting records as
$1,270.
- The July bank statement shows the bank collected $9,500 cash on
a noninterest-bearing note for Branch, deducted a $48 collection
expense, and credited the remainder to its account. Branch had not
recorded this event before receiving the statement.
- The bank statement shows an $805 charge for a $795 NSF check
plus a $10 NSF charge. The check had been received from a customer,
Evan Shaw. Branch has not yet recorded this check as NSF.
- The July statement shows a $14 bank service charge. It has not
yet been recorded in miscellaneous expenses because no previous
notification had been received.
- Branch’s July 31 daily cash receipts of $10,652 were placed in
the bank’s night depository on that date but do not appear on the
July 31 bank statement.
Required:
1. Prepare the bank reconciliation for this
company as of July 31.