Bank Reconciliation on July 31, Arthur Company’s Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $10,170.62. A comparison of returned checks and bank advices revealed the following: Deposits in transit July 31 amounted to $3,316.12 2. Outstanding check July 31 totaled $1,251.12 3. The bank erroneously charged a $215 check of Solomon Company against the Arthur bank account A $15 bank service charge has not yet been recount Arthur Company Arthur neglected to record $4,000 borrowed from the bank on a 10 percent six-month note. The bank statement shows the $4,000 as a deposit Included with the returned check is a memo indicating that J.Martin’s check for $610 had been returned NSF. Martin, a customer, has sent the check to pay an account of $660 less a $50 discount Arthur company recorded a $107 payment for repairs as $1,0

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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LO5 P7-4A Bank Reconciliation on July 31, Arthur Company’s Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $10,170.62. A comparison of returned checks and bank advices revealed the following:

  1. Deposits in transit July 31 amounted to $3,316.12
  2. 2. Outstanding check July 31 totaled $1,251.12
  3. 3. The bank erroneously charged a $215 check of Solomon Company against the Arthur bank account
  4. A $15 bank service charge has not yet been recount Arthur Company
  5. Arthur neglected to record $4,000 borrowed from the bank on a 10 percent six-month note. The bank statement shows the $4,000 as a deposit
  6. Included with the returned check is a memo indicating that J.Martin’s check for $610 had been returned NSF. Martin, a customer, has sent the check to pay an account of $660 less a $50 discount
  7. Arthur company recorded a $107 payment for repairs as $1,070

 

Required

a. Prepare a bank reconciliation for Arthur Company at July 31

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