Exercise 7-11 CRANE VIDEO COMPANY Bank Reconciliation July 31 Date Account Title

Question

Exercise 7-11

CRANE VIDEO COMPANY
Bank Reconciliation
July 31

Date

Account Titles and Explanation

Debit

Credit

(To record the collection of the note.)

(To record the bank service charge.)

Exercise 7-11

The following information pertains to Crane Video Company.
1. Cash balance per bank, July 31, $7,843. 2. July bank service charge not recorded by the depositor $37. 3. Cash balance per books, July 31, $7,864. 4. Deposits in transit, July 31, $1,790. 5. Bank collected $1,190 note for Crane in July, plus interest $45, less fee $29. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks, July 31, $600.

Explanation / Answer

Bank reconciliation Statement Particulars Amount Cash balance per books              7,864.00 Deposit in Transit not coming in bank book           (1,790.00) Outstanding cheques                 600.00 Bank Service Charges                 (37.00) Collection of note Receivable, Interest less Fees (1190 + 45 -29)              1,206.00 Cash balance per bank              7,843.00 Particulars Dr Amt Cr Amt Bank Service Charge                      37.00 To Bank A/C                     37.00 Bank A/C Dr              1,206.00 Bank fees Dr                    29.00 To Note receivable               1,190.00 To Interest Revenue                     45.00

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