The balance shown on the July bank statemant of Colt Company was $15,500. After

Question

The balance shown on the July bank statemant of Colt Company was $15,500. After examining the bank statement and items included with it, the accountant found:

Chacks outstanding $8,700. NFS Check$250. Note collected by bank $1,500. Interest on NOte collected$100. Deposits outstanding $1,750. Bank Service Charges $25

A, What should be balance of cash be on Colt Company's books at the end of July.

B, Which amounts would require a journal entry on Colt'S books? Matk them with an /

C, Choose one of the items that you identified in B and make the journal entry in good form.

Explanation / Answer

Balance as per the Bank Books        15,500 Add : Bank Service Charges                 25 Interest on Note Collected               100 Checks outstandings           8,700 NFS Check               250           9,075 Less : Note collected by Bank           1,500 Deposits Outstanding           1,750           3,250 Balance as per cash Book        21,325 The following Amounts require Journal Entries 1 Bank Charges                 25 Bank                 25 (towards Bank Charges debited by Bank) 2 Interest Expenses               100 Bank              100 (towards interest on collected charges) 3 Bank           1,500 Notes Collection           1,500 (towards notes collected by Bank) 4 NFS Check               250 Bank              250 (towards Direct payment by Bank)

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