The accountant of ABC has collected the following information for the month of July 2019. ABC’s bank statement for July 2019 shows the following data: Balance on 1 July as per bank $29,500 Balance on 31 July as per bank $15,907.45       The cash balance as per company records as of July 31 is $11,589.45. Further review of the data reveals the following information:   Errors: Check no115 for $1,226. The bank correctly paid the amount, but ABC recorded the check as $1,262.   Outstanding checks on July 31, total $5,904   Deposits in transit on July 31 total $2,201.40   Bank statement shows: A. Debit-NSF check: $425.60 B. Debit-bank fee $30 C. Credit- collection of note receivable for $1,000 plus interest earned $50 and bank collection fee $15.   Required: Prepare bank reconciliation on July 31, 2019.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The accountant of ABC has collected the following information for the month of July 2019.

ABC’s bank statement for July 2019 shows the following data:

Balance on 1 July as per bank

$29,500

Balance on 31 July as per bank

$15,907.45

 

 

 

The cash balance as per company records as of July 31 is $11,589.45. Further review of the data reveals the following information:

 

    1. Errors: Check no115 for $1,226. The bank correctly paid the amount, but ABC recorded the check as $1,262.

 

    1. Outstanding checks on July 31, total $5,904

 

    1. Deposits in transit on July 31 total $2,201.40

 

  1. Bank statement shows:

A. Debit-NSF check: $425.60

B. Debit-bank fee $30

C. Credit- collection of note receivable for $1,000 plus interest earned $50 and bank collection fee $15.

 

Required:
Prepare bank reconciliation on July 31, 2019.

 

 

 

 

 
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