Answer:
A. Adjusted cash balance per bank $13,545
Adjusted cash balance per books $13,545
B. July 31
Dr Cash $2,520
Cr Accounts Receivable $2,520
July 31
Dr Bank service charge $63
Cr Cash $63
Explanation:
A. Preparation of a bank reconciliation at July 31, 2010
PHAROAH COMPANY
Bank Reconciliation
31-Jul-10
Cash Balance per bank statement $10,962
Add: Deposit in transit $4,473
$15,435
Less: Outstanding checks $1,890
Adjusted cash balance per bank $13,545
Cash balance per books $11,088
Add: Electronic fund transfer received $2,520
$13,608
less; Bank service charge $63
Adjusted cash balance per books $13,545
B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.
July 31
Dr Cash $2,520
Cr Accounts Receivable $2,520
(To record electronic fund transfer received by bank)
July 31
Dr Bank service charge $63
Cr Cash $63
(To record bank service charges )
