2024 – Hidetoshi Company maintains a checking account at the Imura Bank At July 31 selected data from
Hidetoshi Company Maintains A Checking Account At The Imura Bank – 2024
Hidetoshi Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.
Cash in Bank |
||
Per Books |
Per Bank |
|
Balance, July 1 |
$17,600 |
$16,800 |
July receipts |
81,400 |
|
July credits |
82,470 |
|
July disbursements |
77,150 |
|
July debits |
74,756 |
|
Balance, July 31 |
$21,850 |
$24,514 |
Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks.
You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155.
The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.
Instructions
(a) Prepare a bank reconciliation at July 31, 2012.
(b) Journalize the adjusting entries to be made by Hidetoshi Company. Assume that interest on the note has not been accrued.
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