Problem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3[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.On July 31, the company’s Cash account has a $25,202 debit balance, but its July bank statement shows a $26,741 cash balance.Check Number 3031 for $1,180, Check Number 3065 for $366, and Check Number 3069 for $1,948 are outstanding checks as of July 31.Check Number 3056 for July rent expense was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250.The July bank statement shows the bank collected $5,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.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.The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.Branch’s July 31 daily cash receipts of $6,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31. Journal entry worksheetNote: Enter debits before credits.Transaction.Record the adjusting entry required, if any, related to the NSF check.Record entryJournal entry worksheet<5Note: Enter debits before creditsTransactionEGeneral JournalRecord entry56 7General JournalClear entry67Record the adjusting entry required, if any, related to bank service charges.DebitCreditDebitView general journalCreditView general journalJournal entry worksheet<1 2 3 4 5 6Record the adjusting entry required, if any, related to the July 31 deposit.Note: Enter debits before credits.TransactionRecord entryGeneral JournalClear entryDebitCreditView general journal Journal entry worksheet< 1 2Record the adjusting entry required, if any, related to the July 31 cashbalance.Note: Enter debits before creditsTransaction&Record entry1Journal entry worksheet<32General JournalNote: Enter debits before creditsTransactionbClear entryRecord entry4 5 6 7Record the adjusting entry required, if any, related to the outstanding checks.General JournalDebit CreditClear entryDebitCredit>>View general journalJournal entry worksheet23Record the adjusting entry required, if any, related to Check Number 3056.Note: Enter debits before credits.TransactionCRecord entry4 5 63Record entryJournal entry worksheetNote: Enter debits before creditsTransactiondGeneral JournalClear entry45Record the adjusting entry required, if any, for the collection of the note bybank for Branch.General Journal7Clear entryDebit CreditView general journalDebitCreditView general journal

Bank reconciliation is done to reconcile and find the causes of difference between the end balance…

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31. On July 31, the company’s Cash account has a $25,202 debit balance, but its July bank statement shows a $26,741 cash balance. Check Number 3031 for $1,180, Check Number 3065 for $366, and Check Number 3069 for $1,948 are outstanding checks as of July 31. Check Number 3056 for July rent expense was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250. The July bank statement shows the bank collected $5,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. 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. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. Branch’s July 31 daily cash receipts of $6,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement. 2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31.

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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Problem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3

[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.

On July 31, the company’s Cash account has a $25,202 debit balance, but its July bank statement shows a $26,741 cash balance.
Check Number 3031 for $1,180, Check Number 3065 for $366, and Check Number 3069 for $1,948 are outstanding checks as of July 31.
Check Number 3056 for July rent expense was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250.
The July bank statement shows the bank collected $5,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement.
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.
The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
Branch’s July 31 daily cash receipts of $6,632 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31.

Journal entry worksheet
Note: Enter debits before credits.
Transaction
.
Record the adjusting entry required, if any, related to the NSF check.
Record entry
Journal entry worksheet
<
5
Note: Enter debits before credits
Transaction
E
General Journal
Record entry
5
6 7
General Journal
Clear entry
6
7
Record the adjusting entry required, if any, related to bank service charges.
Debit
Credit
Debit
View general journal
Credit
View general journal
Journal entry worksheet
<
1 2 3 4 5 6
Record the adjusting entry required, if any, related to the July 31 deposit.
Note: Enter debits before credits.
Transaction
Record entry
General Journal
Clear entry
Debit
Credit
View general journal

Journal entry worksheet
< 1 2
Record the adjusting entry required, if any, related to the July 31 cash
balance.
Note: Enter debits before credits
Transaction
&
Record entry
1
Journal entry worksheet
<
3
2
General Journal
Note: Enter debits before credits
Transaction
b
Clear entry
Record entry
4 5 6 7
Record the adjusting entry required, if any, related to the outstanding checks.
General Journal
Debit Credit
Clear entry
Debit
Credit
>
>
View general journal
Journal entry worksheet
2
3
Record the adjusting entry required, if any, related to Check Number 3056.
Note: Enter debits before credits.
Transaction
C
Record entry
4 5 6
3
Record entry
Journal entry worksheet
Note: Enter debits before credits
Transaction
d
General Journal
Clear entry
4
5
Record the adjusting entry required, if any, for the collection of the note by
bank for Branch.
General Journal
7
Clear entry
Debit Credit
View general journal
Debit
Credit
View general journal

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