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Frank Kane company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of july 31 has a credit balance of K225 and there is no undeposited cash on hand.

a) Assuming that there were no errors in journalizing or posting, What is the explanation of this unusual balance 

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The following information is available to reconcile the Branch Company’s book balance of cash with its bank statement cash balance as of July 31.

  

  1. On July 31, the company’s Cash account has a $25,457 debit balance, but its July bank statement shows a $28,096 cash balance.
  2. Check No. 3031 for $1,620, Check No. 3065 for $586, and Check No. 3069 for $2,388 are outstanding checks as of July 31.
  3. Check No. 3056 for July rent expense was correctly written and drawn for $1,260 but was erroneously entered in the accounting records as $1,250.
  4. The July bank statement shows the bank collected $5,000 cash on a note for Branch. The branch had not recorded this event before receiving the statement.
  5. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. The branch has not yet recorded this check as NSF.
  6. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.
  7. Branch’s July 31 daily cash receipts of $6,132 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

2. Prepare the journal entries necessary to make the company’s book balance of cash equal to the reconciled cash balance as of July 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

MC Qu. 142 Clayborn Company deposits all cash receipts...Clayborn Company deposits all cash receipts on the day they arereceived and makes all cash payments by check. At the close ofbusiness on May 31, its Cash account shows a debit balance of$17,025. Clayborn's May bank statement shows $15,800 on deposit inthe bank. Determine the adjusted cash balance using the followinginformation: Deposit in transit $5,200 Outstanding checks $4,600Bank service fees, not yet recorded by company $25 A NSF check froma customer, not yet recorded by the company $600 The adjusted cashbalance should be:

MC Qu. 142 Clayborn Company deposits all cash receipts...

Clayborn Company deposits all cash receipts on the day they arereceived and makes all cash payments by check. At the close ofbusiness on May 31, its Cash account shows a debit balance of$17,025. Clayborn's May bank statement shows $15,800 on deposit inthe bank. Determine the adjusted cash balance using the followinginformation:

Deposit intransit $5,200
Outstandingchecks $4,600
Bank servicefees, not yet recorded by company $25
A NSF check froma customer, not yet recorded by the company $600


The adjusted cash balance should be:

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017.

On July 31, the company’s Cash account has a $24,754 debit balance, but its July bank statement shows a $27,067 cash balance.

Check No. 3031 for $1,510 and Check No. 3040 for $747 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $531 and Check No. 3069 for $2,278, both written in July, are not among the canceled checks on the July 31 statement.

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 $1,260 but was erroneously entered in the accounting records as $1,250.

The July bank statement shows the bank collected $6,000 cash on a noninterest-bearing note for Branch, deducted a $30 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.

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. Branch has not yet recorded this check as NSF.

The July statement shows a $9 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received.

Branch’s July 31 daily cash receipts of $7,152 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Required:

1. Prepare the bank reconciliation for this company as of July 31, 2017.

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