Required information [The following information applies to the questions displayed below.) The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,367 debit balance, but its July bank statement shows a $27,751 cash balance. b. Check Number 3031 for $1,520, Check Number 3065 for $536, and Check Number 3069 for $2,288 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,240. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. 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. f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.
Required information [The following information applies to the questions displayed below.) The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,367 debit balance, but its July bank statement shows a $27,751 cash balance. b. Check Number 3031 for $1,520, Check Number 3065 for $536, and Check Number 3069 for $2,288 are outstanding checks as of July 31. c. Check Number 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,240. d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. e. 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. f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash
balance as of July 31.
a. On July 31, the company's Cash account has a $25,367 debit balance, but its July bank statement shows a $27,751
cash balance.
b. Check Number 3031 for $1,520, Check Number 3065 for $536, and Check Number 3069 for $2,288 are outstanding
checks as of July 31.
c. Check Number 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered
in the accounting records as $1,240.
d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this
event before receiving the statement.
e. 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.
f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses
because no previous notification had been received.
g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not
appear on the July 31 bank statement.
Required:
1. Prepare the bank reconciliation for this company as of July 31.
Bank statement balance
Add:
Deduct:
Check Number 3040
Adjusted bank balance
BRANCH COMPANY
Bank Reconciliation
July 31
$ 28,567 Book balance.
Add:
0
28,567
Deposit of July 31
Error (Check 3056)
NSF check
Proceeds from note
Service charge
0
$ 28,567 Adjusted book balance
$
$
25,506
0
25,506
0
25,506](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7a97132-4e66-498b-8eec-a62f91104a96%2Fa0dc72e5-e836-4099-bac7-49b6c45cf502%2Fgrffnsl_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash
balance as of July 31.
a. On July 31, the company's Cash account has a $25,367 debit balance, but its July bank statement shows a $27,751
cash balance.
b. Check Number 3031 for $1,520, Check Number 3065 for $536, and Check Number 3069 for $2,288 are outstanding
checks as of July 31.
c. Check Number 3056 for July rent expense was correctly written and drawn for $1,250 but was erroneously entered
in the accounting records as $1,240.
d. The July bank statement shows the bank collected $8,500 cash on a note for Branch. Branch had not recorded this
event before receiving the statement.
e. 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.
f. The July statement shows a $13 bank service charge. It has not yet been recorded in miscellaneous expenses
because no previous notification had been received.
g. Branch's July 31 daily cash receipts of $9,632 were placed in the bank's night depository on that date but do not
appear on the July 31 bank statement.
Required:
1. Prepare the bank reconciliation for this company as of July 31.
Bank statement balance
Add:
Deduct:
Check Number 3040
Adjusted bank balance
BRANCH COMPANY
Bank Reconciliation
July 31
$ 28,567 Book balance.
Add:
0
28,567
Deposit of July 31
Error (Check 3056)
NSF check
Proceeds from note
Service charge
0
$ 28,567 Adjusted book balance
$
$
25,506
0
25,506
0
25,506
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