On July 31, Cullumber Ltd. had a cash balance of $10,870 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $18,276. A comparison of the bank statement with the Cash account revealed the following:1. The bank statement included service charges and debit and credit card processing fees of $94.2. The bank statement included electronic collections from customers on account totalling $4,400. Cullumber had not recorded the EFT.3. A deposit of $2,600 made by another company was incorrectly added to Cullumber’s account by the Caisse Populaire.4. Salaries of $3,520 were paid electronically during the month. The company has already recorded these.5. Cheques outstanding on June 30 totalled $2,310. Of these, $1,810 worth cleared the bank in July. All cheques written in July cleared the bank in July. PART A) Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)PART B) Prepare any journal entries required from the reconciliation

Bank reconciliation: Bank reconciliation is a statement which is prepared to reconcile the cash…

Answered: On July 31, Cullumber Ltd. had a cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On July 31, Cullumber Ltd. had a cash balance of $10,870 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $18,276. A comparison of the bank statement with the Cash account revealed the following:

1.		The bank statement included service charges and debit and credit card processing fees of $94.
2.		The bank statement included electronic collections from customers on account totalling $4,400. Cullumber had not recorded the EFT.
3.		A deposit of $2,600 made by another company was incorrectly added to Cullumber’s account by the Caisse Populaire.
4.		Salaries of $3,520 were paid electronically during the month. The company has already recorded these.
5.		Cheques outstanding on June 30 totalled $2,310. Of these, $1,810 worth cleared the bank in July. All cheques written in July cleared the bank in July.

PART A) Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)

PART B) Prepare any journal entries required from the reconciliation

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