The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance a

Question

23 days ago

12

The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance a

s of July 31, 2017:
a. On July 31, the company's Cash account has a $27,497 debit balance, but its July bank statement shows a $27,233 cash balance

b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconciliation. Check eBook No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $382 and Check No. 3069 for $2,281, both written in July, are not among the canceled checks on the July 31 statement.

c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the Print accounting records as $1,250.

d. The July bank statement shows the bank collected $8,000 cash on a noninterest-bearing note for Branch, deducted a $45 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving on the July 31 bank statement.

e. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw.

f. The July statement shows a $25 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received

g. Branch's July 31 daily cash receipts of $11514 were placed in the bank's night depository on that date but do not appear the statement. Branch has not yet recorded this check as NSF.

l. Journalize entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance.
Prepare statements as of July 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Business

2 answers:

harina [3.5K] · Answer 1 · 2026-03-15T23:42:53+03:00

Answer:

a. No need for a journal entry.

Explanation:

a. No need for a journal entry.

b. No need for a journal entry.

c. Debit - Rent Expense - $20

Credit - Cash - $20

d. Cash (Debit) 7,955

Debit - Collection Expense - $45

Credit - Notes Receivable - $8,000

e. Debit - Accounts Receivable-E. Shaw - $805

Credit - Cash - $805

f. Debit - Miscellaneous Expenses - $25

Credit - Cash - $25

g. No need for a journal entry.

i. No need for a journal entry.

Katen [3.2K] · Answer 2 · 2026-03-15T23:40:35+03:00

Answer:

Explanation:

BRANCH COMPANY

Bank Reconciliation July 31, 2017

Bank statement $27,233 Book balance $27,497

balance

Add: Add:

Deposit of $11,514 Proceeds of note $7,955 July 31 less collection charge

$11,514 $ 7,955

$38,747 $35,452

Deduct: Deduct:

Check No. 3031 $1,482 NSF check including fee $805

Check No. 3065 $382 Service charge $25

Check No. 3069 $2,281 Error (Check 3056) $20

$ 4,145 $850

Adjusted bank $34,602 Adjusted book $34,602

balance balance

Transaction General Journal Debit Credit

a. No need for a journal entry

b. No need for a journal entry

c. Rent expense $20

Cash $20

d. Cash $7,955

Collection expense $45

Notes receivable $ 8,000

e. Accounts receivable—E. Shaw $805

Cash $805

f. Miscellaneous expenses $25

Cash $ 25

g. No need for a journal entry