Problem 7-3A (Part Level Submission) (a) Problem 7-3A (Part Level Submission) On

Question

Problem 7-3A (Part Level Submission)

(a)

Problem 7-3A (Part Level Submission)

On July 31, 2017, Oriole Company had a cash balance per books of $6,315.00. The statement from Dakota State Bank on that date showed a balance of $7,865.80. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $20.00. 2. The bank collected $1,695.00 for Oriole Company through electronic funds transfer. 3. The July 31 receipts of $1,373.30 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 L. Taylor, a creditor, for $394.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $349.00. 5. Checks outstanding on July 31 totaled $2,044.10. 6. On July 31, the bank statement showed an NSF charge of $750.00 for a check received by the company from W. Krueger, a customer, on account.

Explanation / Answer

Bank Reconciliation May 31, 2014 Cash balance per bank statement 7865.8 Add: Deposit in transit 1373.3 9239.1 Less: Outstanding checks 2044.1 Adjusted cash balance per bank 7195 Cash balance per books 6315 Add: Electronic funds transfer received 1695 8010 Less: NSF check 750 Error in recording check No. 2480 45 Bank service charge 20 815 Adjusted cash balance per books 7195

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