[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, 2016. On July 31, the company’s Cash account has a
$25,750 debit balance, but its July bank statement shows a $28,463
cash balance. Check No. 3031 for $1,670 and Check No. 3040 for $827
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 $611 and Check No. 3069 for $2,438, 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 was correctly written and drawn for $1,270
but was erroneously entered in the accounting records as $1,260. A
credit memorandum enclosed with the July bank statement indicates
the bank collected $6,000 cash on a non-interest-bearing note for
Branch, deducted a $30 collection fee, and credited the remainder
to its account. Branch had not recorded this event before receiving
the statement. A debit memorandum for $805 lists 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. Enclosed
with the July statement is a $9 debit memorandum for bank services.
It has not yet been recorded because no previous notification had
been received. Branch’s July 31 daily cash receipts of $7,152 were
placed in the bank’s night depository on that date but do not
appear on the July 31 bank statement.
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|
| BRANCH COMPANY |
| Bank Reconciliation |
| July 31, 2016 |
| Bank statement balance |
|
$28,463 |
Book balance |
|
$25,750 |
| Add: |
|
|
Add: |
|
|
| Deposit of July 31 |
|
|
|
|
|
|
|
0 |
|
|
0 |
|
|
28,463 |
|
|
25,750 |
| Deduct: |
|
|
Deduct: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
0 |
| Adjusted bank balance |
|
$28,463 |
Adjusted book balance |
|
$25,750 |
|