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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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 |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sun Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Amount Descriptions | |
Adjusted cash balance | |
Bank service charge | |
Deposit in transit | |
Interest on note | |
Note collected by bank | |
Outstanding checks | |
Returned NSF check |

Transcribed Image Text: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

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