On July 31, 2014, Redeker Company had a cash balance per books of $6,435. The st

Question

On July 31, 2014, Redeker Company had a cash balance per books of $6,435. The statement from Nashota State Bank on that date showed a balance of $7,985.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $23. 2. The bank collected a note receivable of $1,646 for Redeker Company on July 15, plus $32 of interest. The bank made a $12 charge for the collection. Redeker has not accrued any interest on the note. 3. The July 31 receipts of $1,341.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to T. Laird, a creditor, for $354.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $345.00. 5. Checks outstanding on July 31 totaled $1,979.10. 6. On July 31, the bank statement showed an NSF charge of $721 for a check received by the company from K. Wagner, a customer, on account. Prepare the bank reconciliation as of July 31. REDEKER COMPANY Bank Reconciliation July 31, 2014 $ Add: Less: $ $ Add: Less: $ $

Explanation / Answer

Cash Balance lans per Bank book 7985.8 (+) Deposit in Transit 1341.3 (-) checks Outstanding 1979.1 7348 Cash Balance as per Books 6435 (+) note receivable collected 1646 (+) Interest amount collected 32 (-) NSF charge 721 (-) Error in recording payment (354-345) 9 (-) Bank Service charge 35.2 7347.8

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