Problem 8-4A Preparing a bank reconciliation and recordingadjustments P3 Images Missing The following information isavailable to reconcile Branch Company’s book balance of cash withits bank statement cash balance as of July 31, 2017. On July 31,the company’s Cash account has a $27,497 debit balance, but itsJuly bank statement shows a $27,233 cash balance. Check No. 3031for $1,482 and Check No. 3040 for $558 were outstanding on the June30 bank reconciliation. Check No. 3040 is listed with the Julycanceled checks, but Check No. 3031 is not. Also, Check No. 3065for $382 and Check No. 3069 for $2,281, both written in July, arenot among the canceled checks on the July 31 statement. Incomparing the canceled checks on the bank statement with theentries in the accounting records, it is found that Check No. 3056for July rent expense was correctly written and drawn for $1,270but was erroneously entered in the accounting records as $1,250.The July bank statement shows the bank collected $8,000 cash on anoninterest-bearing note for Branch, deducted a $45 collectionexpense, and credited the remainder to its account. Branch had notrecorded this event before receiving the statement. The bankstatement shows an $805 charge for a $795 NSF check plus a $10 NSFcharge. The check had been received from a customer, Evan Shaw.Branch has not yet recorded this check as NSF. The July statementshows a $25 bank service charge. It has not yet been recorded inmiscellaneous expenses because no previous notification had beenreceived. Branch’s July 31 daily cash receipts of $11,514 wereplaced in the bank’s night depository on that date but do notappear on the July 31 bank statement. Check (1) Reconciled balance,$34,602; (2) Cr. Notes Receivable, $8,000 Required Prepare the bankreconciliation for this company as of July 31, 2017. Prepare thejournal entries necessary to bring the company’s book balance ofcash into conformity with the reconciled cash balance as of July31, 2017.
