CRANE VIDEO COMPANY Bank Reconciliation July 31 SHOW LIST OF ACCOUNTS LINK TO TE

Question

CRANE VIDEO COMPANY
Bank Reconciliation
July 31

SHOW LIST OF ACCOUNTS

LINK TO TEXT

No.

Account Titles and Explanation

Debit

Credit

(To record the collection of the note.)

(To record the bank service charge.)

The following information pertains to Crane Video Company.
1. Cash balance per bank, July 31, $8,183. 2. July bank service charge not recorded by the depositor $35. 3. Cash balance per books, July 31, $8,204. 4. Deposits in transit, July 31, $1,960. 5. Bank collected $1,360 note for Crane in July, plus interest $43, less fee $27. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks, July 31, $598.

Explanation / Answer

Bank Reconciliation

1)

Bank Reconciliation

Balance as per bank 8,183 Add :Deposit in transit 1,960 less:outsanding checks -598 Adjusted bank balance 9,545 Balance as per books 8,204 Add Note collected (1360+43-27) 1376 lessBank service charge -35 Adjusted Book Balance 9,545 2) Journal Entries Date Accounting titles& explanations Debit Credit 31-Jul Cash 1376 processing fee 27 note receivable 1360 interest income 43 ( To record the collection of note receivable) 31-Jul Bank service charges 35 cash 35 ( To record the bank service charges

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