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.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 22E
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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 |
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 |
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