Cash in Bank Per Books Per Bank (a) Prepare a bank reconciliation at July 31, 20

Question

Cash in Bank

Per Books

Per Bank

(a)

Prepare a bank reconciliation at July 31, 2017.

Rodriguez Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

Cash in Bank

Per Books

Per Bank

Balance, July 1 $18,030 $16,230 July receipts 81,830 July credits 83,905 July disbursements 77,580 July debits 75,186 Balance, July 31 $22,280 $24,949

Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $4,905 for the collection of a $4,830 note plus interest revenue of $75. The July debits per bank consist of checks cleared $75,125 and a debit memorandum of $61 for printing additional company checks.

You also discover the following errors involving July checks. (1) A check for $490 to a creditor on account that cleared the bank in July was journalized and posted as $940. (2) A salary check to an employee for $255 was recorded by the bank for $155.

The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,430 and outstanding checks of $6,630.

Explanation / Answer

Bank Reconcilliation Statement July Balance as per Bank 24949 Difference in Receipts 2075 Disbursements -2394 Less: Difference in Op -1800 Balance as per Cash Book 22830

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