On July 31, 2014, Redeker Company had a cash balance per books of $6,284. The st

Question

On July 31, 2014, Redeker Company had a cash balance per books of $6,284. The statement from Nashota State Bank on that date showed a balance of $7,834.80. A comparison of the bank statement with the Cash account revealed the following facts

. 1. The bank service charge for July was $20

. 2. The bank collected a note receivable of $1,667 for Redeker Company on July 15, plus $35 of interest. The bank made a $15 charge for the collection. Redeker has not accrued any interest on the note.

3. The July 31 receipts of $1,365.30 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 $2,000.10.

6. On July 31, the bank statement showed an NSF charge of $742 for a check received by the company from K. Wagner, a customer, on account.

REDEKER COMPANY
Make a Bank Reconciliation
July 31, 2014

REDEKER COMPANY
Make a Bank Reconciliation
July 31, 2014

Explanation / Answer

REDEKER COMPANY Bank reconcilation statement For July 31, 2014 Amount($) Bank Balance as per cash Book      6,284.00 Add: (i)Collection of note receivable plus interest thereon minus bank charge 1,687.00 (ii)Cheque issued but not presented for payment 2,000.10      3,687.10 Total      9,971.10 Less: (i) Bank service charge for the month of july 20.00 (ii) Receipts not cleared by bank 1,365.30 (iii) Under recording of payment by ch.No. 2480 9.00 (iv) NSF Charge deducted by Bank 742.00      2,136.30 Bank balance as per Nashota State bank Statement      7,834.80

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