During July the cash transactions and cash balances of Rapid Harvest were es follows: The cash balance per the bank statement at July 31 was $28,945.27. 2 The ledger account for Cash had a balance at July 31 of $26,686.95. Cash receipts on July 31 amounted to $4,000. These cash receipts were left at the bank in the night depository chute after banking hours on July 31 and therefore were not included by the bank in the July bank statement. 4 Included with the July bank statement was a credit memorandum showing interest earned by the depositor on this account in the amount of $80. 5 Another credit memorandum enclosed with the July bank statement showed that a non-interest-bearing note for $3,663 from Ralph Warde, left with the bank for collection, had been collected and the proceeds credited to the account of Rapid Harvest. 6 Also included with the July bank statement was a debit memorandum from the bank for $19.45 representing service charges for July. 7 Comparison of the paid checks returned by the bank with the entries in the accounting records revealed that check no. 922 for $4,521.50 issued July 15 in payment for salaries expense had been erroneously entered in the accounting records as $5,421.50. Examination of the paid checks also revealed that three checks, all issued in July, had not yet been paid by the bank: no. 921 for $944.32; no. 924 for $320.50; no. 935 for $538.15. Included with the July bank statement was a $168.20 check drawn by Edward Jones, a customer of Rapid Harvest. This check was marked "NSF." It had been included in the deposit of July 27 but had been charged back against the com- pany's account on July 31. 8. a Prepare a bank reconciliation for Rapid Harvest at July 31. b Prepare journal entries (in general journal form) to adjust the accounts at July 31. Assume that the accounts have not becn closed. c State tie amount of cash which should be included in the balance sheet at July 31.
During July the cash transactions and cash balances of Rapid Harvest were es follows: The cash balance per the bank statement at July 31 was $28,945.27. 2 The ledger account for Cash had a balance at July 31 of $26,686.95. Cash receipts on July 31 amounted to $4,000. These cash receipts were left at the bank in the night depository chute after banking hours on July 31 and therefore were not included by the bank in the July bank statement. 4 Included with the July bank statement was a credit memorandum showing interest earned by the depositor on this account in the amount of $80. 5 Another credit memorandum enclosed with the July bank statement showed that a non-interest-bearing note for $3,663 from Ralph Warde, left with the bank for collection, had been collected and the proceeds credited to the account of Rapid Harvest. 6 Also included with the July bank statement was a debit memorandum from the bank for $19.45 representing service charges for July. 7 Comparison of the paid checks returned by the bank with the entries in the accounting records revealed that check no. 922 for $4,521.50 issued July 15 in payment for salaries expense had been erroneously entered in the accounting records as $5,421.50. Examination of the paid checks also revealed that three checks, all issued in July, had not yet been paid by the bank: no. 921 for $944.32; no. 924 for $320.50; no. 935 for $538.15. Included with the July bank statement was a $168.20 check drawn by Edward Jones, a customer of Rapid Harvest. This check was marked "NSF." It had been included in the deposit of July 27 but had been charged back against the com- pany's account on July 31. 8. a Prepare a bank reconciliation for Rapid Harvest at July 31. b Prepare journal entries (in general journal form) to adjust the accounts at July 31. Assume that the accounts have not becn closed. c State tie amount of cash which should be included in the balance sheet at July 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During July the cash transactions and cash balances of Rapid Harvest were as
PROBLEM 782
A More Com-
prehenstve
Bank Reconcil-
follows:
1. The cash balance per the bank statement at July 31 was $28,945.27.
2 The ledger account for Cash had a balance át July 31 of $26,686.95.
latlon
Cash receipts on July 31 amounted to $4,000. These cash receipts were left at
the bank in the night depository chute after banking hours on July 31 and
therefore were not included by the bank in the July bank statement.
4 Included with the July bank statement was a credit memorandum showing
interest earned by the depositor on this account in the amount of $80.
5 Another credit memorandum enclosed with the July bank statement showed
that a non-interest-bearing note for $3,663 from Ralph Warde, left with the
bank for collection, had been collected and the proceeds credited to the account
of Rapid Harvest.
6 Also included with the July bank statement was a debit memorandum from the
bank for $19.45 representing service charges for July.
7 Comparison of the paid checks returned by the bank with the entries in the
accounting records revealed that check no. 922 for $4,521.50 issued July 15 in
payment for salaries expense had been erroneously entcred in the accounting
records as $5,421.50.
8 Examination of the paid checks also revealed that three checks, all issued in
July, had not yet been paid by the bank: no. 921 for $944.32; no. 924 for
$320.50; no. 935 for $538.15.
9 Included with the July bank statement was a $168.20 check drawn by Edward
Jones, a customer of Rapid Harvest. This check was marked "NSF." It had been
included in the deposit of July 27 but had been charged back against the com-
pany's account on July 31.
INSTRUCTIONS a Prepare a bank reconciliation for Rapid Harvest at July 31.
b Prepare journal entries (in general journal form) to adjust the accounts at July
31. Assume that the accounts have not becn closed.
c State tihe amount of cash which should be included in the balance sheet at July
31.
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