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. Outstanding checks July 31 totaled $1,251.12. 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 recorded by 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 checks is a memo indicating that J. Martin’s check for $610 had been returned NSF. Martin, a customer, had 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.
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. Outstanding checks July 31 totaled $1,251.12.
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 recorded by 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 checks is a memo indicating that J. Martin’s check for $610 had been returned NSF. Martin, a customer, had 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.
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