CRANE VIDEO COMPANY Bank Reconciliation July 31 No. Account Titles and Explanati

Question

CRANE VIDEO COMPANY
Bank Reconciliation
July 31

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, $7,763. 2. July bank service charge not recorded by the depositor $38. 3. Cash balance per books, July 31, $7,784. 4. Deposits in transit, July 31, $1,750. 5. Bank collected $1,150 note for Crane in July, plus interest $46, less fee $30. The collection has not been recorded by Crane, and no interest has been accrued. 6. Outstanding checks, July 31, $601.

Explanation / Answer

CRANE VIDEO COMPANY Bank Reconciliation July 31 Cash balance per bank statement 7763 Add: Deposits in transit 1750 9513 Less: Outstanding checks 601 Adjusted cash balance per bank 8912 Cash balance per books 7784 Add: Collection of note receivable 1166 8950 Less: Bank service charge 38 Adjusted cash balance per books 8912 No. Account Titles and Explanations Debit Credit Jul-31 Cash 1166 Bank charges expense 30 Note receivable 1150 Interest revenue 46 (To record the collection of the note) Jul-31 Bank charges expense 38 Cash 38 (To record the bank service charge)

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