Alpha Company had the following banking information from its bank statement date
ID: 2561992 • Letter: A
Question
Alpha Company had the following banking information from its bank statement dated July 31, 2017:
Item
Amount
Cash Balance per Bank (7/3/17)
$3,350
Bank Service Charges
75
Collection of Note Receivable from Mr. Yankee including the interest of $145
3,145
Customer (Mr. Welcher) returned cheque NSF
225
The following additional information was determined from a review of the cash payments & receipts and the cheque register for Alpha Company
The following cheques had not cleared the bank as paid:
DATE
Ck #
Accounts Payable
Amount
5/25/17
1005
Bravo Office Supply Store
$250
7/15/17
1025
Zulu Electric Company
1,900
7/30/17
1030
Bravo Office Supply Store
250
The following information was recorded in Alpha’s cash receipts ledger and have not yet been recorded in the bank statements:
Date
Item
Amount
5/25/17
Store Cash Sales
$200
7/31/17
Store Cash Sales
$200
7/31/17
Cheques From Store Sales
5,500
7/31/17
Cash Balance per General Ledger (7/31/17)
4,005
Prepare, the compound general journal entry (without explanation) needed to be record the adjustments required to reconcile the July 31st cash book balance to the adjusted bank balance. If no entry is required then write “No Entry Required.”
General Journal:
Date
Accounts
Debit
Credit
7/31/17
Item
Amount
Cash Balance per Bank (7/3/17)
$3,350
Bank Service Charges
75
Collection of Note Receivable from Mr. Yankee including the interest of $145
3,145
Customer (Mr. Welcher) returned cheque NSF
225
Explanation / Answer
7/31/17 Bank Service Charges 75 Cash 75 7/31/17 Cash 3145 Notes receivable 3000 Interest revenue 145 7/31/17 Accounts receivable 225 Cash 225
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