Ask Question
17 June, 01:41

The following information pertains to Crane Video Company:

1. Cash balance per bank, July 31, $7,263.

2. July bank service charge not recorded by the depositor $28.

3. Cash balance per books, July 31, $7,284.

4. Deposits in transit, July 31, $1,300.

5. Bank collected $700 note for Crane in July, plus interest $36, less fee $20. The collection has not been recorded by Crane, and no interest has been accrued.

6. Outstanding checks, July 31, $591.

A. Prepare a bank reconciliation at July 31.

B. Journalize the adjusting entries at July 31 on the books of Crane Video Company.

+4
Answers (1)
  1. 17 June, 03:40
    0
    Prepare Bank Reconciliation Statement

    Balance at Bank as per Cash Book - Up to date $7,972

    Less Lodgements not yet credited : ($1,300)

    Add Unpresented Cheques $591

    Balance as per Bank Statement $7,263

    Adjusting Entries

    J1

    Bank service charge $28 (debit)

    Cash $28 (credit)

    J2

    Cash $700 (debit)

    Note - Receivable Crane $700 (credit)

    J3

    Cash $36 (debit)

    Interest Income $36 (credit)

    J4

    Service Fee $20 (debit)

    Cash $20 (credit)

    Explanation:

    First Update the Cash Book as follows:

    Debit:

    Cash balance $7,284

    Crane $700

    Interest $36

    Totals $8,020

    Credit:

    Bank service charge $28

    Crane : fee $20

    Balance - Up to date $7,972

    Totals $8,020

    Then, Prepare Bank Reconciliation Statement

    Balance at Bank as per Cash Book - Up to date $7,972

    Less Lodgements not yet credited : ($1,300)

    Add Unpresented Cheques $591

    Balance as per Bank Statement $7,263

    Adjusting Entries

    J1

    Bank service charge $28 (debit)

    Cash $28 (credit)

    J2

    Cash $700 (debit)

    Note - Receivable Crane $700 (credit)

    J3

    Cash $36 (debit)

    Interest Income $36 (credit)

    J4

    Service Fee $20 (debit)

    Cash $20 (credit)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following information pertains to Crane Video Company: 1. Cash balance per bank, July 31, $7,263. 2. July bank service charge not ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers