4 Also included with the July bank statement was a debit memorandum from the bank for $7.65 representing service charges for July. A credit memorandum enclosed with the July bank statement indicated that a non-interest-bearing note receivable for $4,545 from Rene Manes, left with the bank for collection, had been collected and the proceeds credited to the account of Norfleet Farm. 6 Comparison of the paid checks returned by the bank with the entries ir the accounting records revealed that check no. 821 for $835.02, issued July 15 in payment for office equipment, had been erroneously entered in Norfleet's rec- ords as $853.02. 7 Examination of the paid checks also revealed that three checks, all issued in July, had not yet been paid by the bank: no. 811 for $861.12; no. 814 for $640.80; no. 823 for $301.05. 8 Included with the July bank statement was a $180 check drawn by Howard Williams, a customer of Norfleet Farm. This check was marked "NSF." It had been included in the deposit of July 27 but had been charged back against the company's account on July 31. a Prepare a bank reconciliation for Norfleet Farm at July 31. b Prepare journal entries (in general journal form) to adjust the accounts at July 31. Assume that the accounts have not been closed. IS c State the amount of cash which should be included in the balance sheet at July 31.
4 Also included with the July bank statement was a debit memorandum from the bank for $7.65 representing service charges for July. A credit memorandum enclosed with the July bank statement indicated that a non-interest-bearing note receivable for $4,545 from Rene Manes, left with the bank for collection, had been collected and the proceeds credited to the account of Norfleet Farm. 6 Comparison of the paid checks returned by the bank with the entries ir the accounting records revealed that check no. 821 for $835.02, issued July 15 in payment for office equipment, had been erroneously entered in Norfleet's rec- ords as $853.02. 7 Examination of the paid checks also revealed that three checks, all issued in July, had not yet been paid by the bank: no. 811 for $861.12; no. 814 for $640.80; no. 823 for $301.05. 8 Included with the July bank statement was a $180 check drawn by Howard Williams, a customer of Norfleet Farm. This check was marked "NSF." It had been included in the deposit of July 27 but had been charged back against the company's account on July 31. a Prepare a bank reconciliation for Norfleet Farm at July 31. b Prepare journal entries (in general journal form) to adjust the accounts at July 31. Assume that the accounts have not been closed. IS c State the 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:347
Also included with the July bank statement was a debit memorandum from the
bank for $7.65 representing service charges for July.
E A credit memorandum enclosed with the July bank statement indicated that a
non-interest-bearing note receivable for $4,545 from Rene Manes, left with the
bank for collection, had been collected and the proceeds credited to the account
of Norfleet Farm.
6 Comparison of the paii checks returned by the bank with the entries ir the
accounting records revealed that check no. 821 for $835.02, issued July 15 in
payment for office equipment, had been erroneously entered in Norfleet's rec-
ords as $853.02.
7 Examination of the paid checks also revealed that three checks, all issued in
July, had not yet been paid by the bank: no. 811 for $861.12; no. 814 for
$640.80; no. 823 for $301.05.
8 Included with the July bank statement was a $180 check drawn by Howard
Williams, a customer of Norfleet Farm. This check was marked "NSF." It had
been included in the deposit of July 27 but had been charged back against the
company's account on July 31.
a Prepare a bank reconciliation for Norfleet Farm at July 31.
b Prepare journal entries (in general journal form) to adjust the accounts at July
31. Assume that the accounts have not been closed.
INSTRUCTIONS
c State the amount of cash which should be included in the balance sheet at July
31.
Transcribed Image Text:The cash transactions and cash balances of Norfleet Farm for July were as follows:
The ledger account for Cash showed a balance at July 31 of $16,766.95.
2. The July bank statement showed a closing balance of.$18,928.12.
1 The cash received on July 31 amounted to $4,017.15. It was left at the barm
the night depository chute after banking hours on
not recorded by the bank on the July statement.
1.
July 31 and
us therefore
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