Cash balance per bank, July 31, $7,905. July bank service charge not recorded by

Question

Cash balance per bank, July 31, $7,905. July bank service charge not recorded by the depositor $58. Cash balance per books, July 31, $7,941. Deposits in transit, July 31, $3,277. Note for $2,577 collected for Joyce Company in July by the bank, plus interest $56 less fee $40. The collection has not been recorded by Joyce Company, and no interest has been accrued. Outstanding checks, July 31, $706. Prepare a bank reconciliation at July 31, 2014. Journalize the adjusting entries at July 31 on the books of Joyce Company.

Explanation / Answer

JULY 31

CASH A/C......................................................DR $2593

BANK FEES A/C............................................DR $40

TO NOTE RECEIVABLE $2577

TO ACCURED INTEREST $2633

JULY 31

SERVICE CHARGES A/C..............................DR $58

TO CASH A/C $58

CASH BALANCE AS PER BANK $7905 ADD DEPOSIT IN TRANSIT $3277 LESS OUTSTANDING CHECKS ($706) CASH BALANCE AS PER BANK $10476

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