Question

On July 31, 2022, Sunland Company had a cash balance per books of $6,275.00. The statement from Dakota State Bank on that date showed a balance of $7,825.80. A comparison of the bank statement with the Cash account revealed the following facts.
(1) The bank service charge for July was $17.00.
(2) The bank collected $1,655.00 from a customer for Sunland Company through electronic funds transfer
(3) The July 31 receipts of $1,336.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31
(4) Company check No. 2480 issued to L. Taylor, a creditor, for $384.00 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $348.00
(5) Checks outstanding on July 31 totaled $1,995.10
(6) On July 31, the bank statement showed an NSF charge of $710.00 for a check received by the company from W. Krueger, a . customer, on account.

Prepare the bank reconciliation as of July 31.

Answer 1

Answer:

Explanation:

Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.  

There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.  

Before preparing we have to calculate the bank error which is shown below:

= $384 - $348

= $36

The preparation of the  bank reconciliation statement on July 31  is presented in the spreadsheet. Kindly find the attachment below: