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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 $25,640 debit balance, but its July bank statement shows a $27,003 cash balance. Check Number 3031 for $1,110, Check Number 3065 for $331, and Check Number 3069 for $1,878 are outstanding checks as of July 31. Check Number 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 $6,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. The July statement shows a $9 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 $7,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

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 $25,640 debit balance, but its July bank statement shows a $27,003 cash balance. Check Number 3031 for $1,110, Check Number 3065 for $331, and Check Number 3069 for $1,878 are outstanding checks as of July 31. Check Number 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 $6,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. The July statement shows a $9 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 $7,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...
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The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  1. On July 31, the company’s Cash account has a $25,640 debit balance, but its July bank statement shows a $27,003 cash balance.
  2. Check Number 3031 for $1,110, Check Number 3065 for $331, and Check Number 3069 for $1,878 are outstanding checks as of July 31.
  3. Check Number 3056 for July rent expense was correctly written and drawn for $1,280 but was erroneously entered in the accounting records as $1,270.
  4. The July bank statement shows the bank collected $6,000 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
  6. The July statement shows a $9 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $7,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.
View transaction list Journal entry worksheet < 1 2 Transaction a Note: Enter debits before credits. 3 4 Record the adjusting entry required, if any, related to the July 31 cash balance. Record entry 5 General Journal 6 Clear entry 7 Debit Credit View general journal >
Transcribed Image Text:View transaction list Journal entry worksheet < 1 2 Transaction a Note: Enter debits before credits. 3 4 Record the adjusting entry required, if any, related to the July 31 cash balance. Record entry 5 General Journal 6 Clear entry 7 Debit Credit View general journal >
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