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30 November, 17:38

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.

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  1. 30 November, 18:11
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    A. Prepare a bank reconciliation at July 31.

    Crane Video Company

    Bank Reconciliation

    July 31

    Cash balance per bank statement $7,263

    Add: Deposits in transit 1300

    8,563

    Less: Outstanding checks 591

    Adjusted cash balance per bank $7,972

    Cash balance per books $7,284

    Add: Collection of N/R ($700 plus

    accrued interest $36 less collection

    fee $20) 716

    8,000

    Less: Bank service charge 28

    Adjusted cash balance per books $7,972

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

    The adjusting entry would be,

    Date Account Title Debit Credit

    Jul 31 Cash 716

    Miscellaneous Expense 20

    Notes Receivable 700

    Interest Revenue 36

    (to record Collection of N/R ($700 plus accrued interest $36 less collection fee $20)

    31 Miscellaneous Expense 28

    Cash 28

    (to record bank service charge)
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