a) The preparation of the bank reconciliation statement on August 31 for Cullumber Company is as follows:
<h3>Bank Reconciliation Statement</h3>
Balance as per bank statement $16,780
Add uncredited deposits of 17,220
Check #705 overstated 36
Less uncashed checks (5,780)
Adjusted bank statement balance of $28,256
b) The preparation of the necessary adjusting entries on August 31 is as follows:
Debit Cash $2,050
Credit Accounts Receivable (EFT deposits) $2,050
Debit Accounts Receivable (R. Dubai) $197
Credit NSF charges $187
Credit Service charges $10
Debit Bank service charges $27
Credit Cash $27
<h3>What is bank reconciliation?</h3>
Bank reconciliation is the comparison of an entity's records with those of its bank, to uncover any differences between these two sets of records of bank transactions.
Bank reconciliation is carried out by the preparation of a bank reconciliation statement, which outlines the deposits, withdrawals, and other activities affecting a bank account for a specific period.
<h3>Data and Calculations:</h3>
Cash balance per books on August 31, 2021 = $26,420
Bank statement balance = $16,780
<h3>Analysis of Discrepancies:</h3>
1. Uncredited deposit = $17,220
2. EFT deposits = $2,050
3. Outstanding checks:
Check #673 = $1,230
Check #710 = $2,330
Check #712 = $2,220
Total outstanding checks = $5,780 ($1,230 + $2,330 + $2,220)
4. NSF charge = $187
Service charge = $10
5. Bank service charges = $27
6. Check #705 overstated = $36 ($173 - $137)
<h3>Adjusted Cash Account:</h3>
Balance as per Cash Book $26,420
EFT deposits $2,050
Less:
NSF charge 187
Bank service charges 27 (214)
Adjusted cash book balance $28,256
Learn more about bank reconciliation statements at brainly.com/question/15525383
