Question

The following information pertains to Carla Vista Company.
1. Cash balance per bank, July 31, $7,738.
2. July bank service charge not recorded by the depositor $48.
3. Cash balance per books, July 31, $7,774.
4. Deposits in transit, July 31, $3,110.
5. $2,426 collected for Carla Vista Company in July by the bank through electronic funds transfer. The collection has not been recorded by Carla Vista Company.
6. Outstanding checks, July 31, $696.
Prepare a bank reconcilliation at July 31 2017.
Journalize the adusting entries at July 31 on the books of Carla Vista company.

Answer 1

Answer:

Bank account reconciliation:

Bank account balance $7,738

+ Deposits in transit $3,110

- Outstanding checks $696          

Reconciled bank account $10,152

Cash account reconciliation:

Cash account balance $7,774

+ Note (or account) collected $2,426

- Bank fees $48                            

Reconciled cash account $10,152

Adjusting journal entries:

July 31, 202x, bank fees expense

Dr Bank fees expense 48

    Cr Cash 48

July 31, 202x, bank fees expense

Dr Cash 2,426

    Cr Notes (or accounts) receivable 2,426