The following information is extracted from the bank statement and the accounting records of Sun Corporation for the month of July, 2019: Cash balance from books, July 31$2,200.35Cash balance from bank, July 312,221.20NSF check returned by bank with bank statement81.00Note collected by bank on July 31190.00Interest on preceding note6.50Bank service charge for July4.40Outstanding checks at end of July150.00Deposit in transit at the end of July240.25 Required:1.Prepare a bank reconciliation for Sun on July 31, 2019.2.Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019. CHART OF ACCOUNTSSun CorporationGeneral Ledger ASSETS111Cash121Accounts Receivable125Notes Receivable141Inventory152Prepaid Insurance181Equipment198Accumulated Depreciation LIABILITIES211Accounts Payable231Salaries Payable250Unearned Revenue261Income Taxes Payable EQUITY311Common Stock331Retained Earnings REVENUE411Sales Revenue431Interest Income EXPENSES500Cost of Goods Sold511Insurance Expense512Utilities Expense521Salaries Expense532Bad Debt Expense540Interest Expense541Depreciation Expense559Miscellaneous Expense910Income Tax Expense Amount Descriptions Adjusted cash balance Bank service charge Deposit in transit Interest on note Note collected by bank Outstanding checks Returned NSF check Prepare a bank reconciliation for Sun on July 31, 2019.Bank Reconciliation InstructionsSun CorporationBank ReconciliationJuly 31, 20191 Balance from bank statement2 Add:45 Deduct:67 Adjusted cash balance89 Balance from company records10 Add:11121314 9 Balance from company records10 Add:1112131415 Deduct:16171819 Adjusted cash balance

Bank reconciliation statement is prepared with a view to reconcile the cash balance as per records…

Answered: The following information is extracted…

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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Question

The following information is extracted from the bank statement and the accounting records of Sun Corporation for the month of July, 2019:


Cash balance from books, July 31	$2,200.35
Cash balance from bank, July 31	2,221.20
NSF check returned by bank with bank statement	81.00
Note collected by bank on July 31	190.00
Interest on preceding note	6.50
Bank service charge for July	4.40
Outstanding checks at end of July	150.00
Deposit in transit at the end of July	240.25

Required:

1.	Prepare a bank reconciliation for Sun on July 31, 2019.
2.	Prepare the journal entries necessary to adjust Sun’s books on July 31, 2019.

CHART OF ACCOUNTS

Sun Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expense
910	Income Tax Expense

Amount Descriptions
Adjusted cash balance
Bank service charge
Deposit in transit
Interest on note
Note collected by bank
Outstanding checks
Returned NSF check

Prepare a bank reconciliation for Sun on July 31, 2019.
Bank Reconciliation Instructions
Sun Corporation
Bank Reconciliation
July 31, 2019
1 Balance from bank statement
2 Add:
4
5 Deduct:
6
7 Adjusted cash balance
8
9 Balance from company records
10 Add:
11
12
13
14

9 Balance from company records
10 Add:
11
12
13
14
15 Deduct:
16
17
18
19 Adjusted cash balance

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