The following information is available to reconcile Branch Company’s book balance of cash with its bank...

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The following information is available to reconcile BranchCompany’s book balance of cash with its bank statement cash balanceas of July 31, 2017. On July 31, the company’s Cash account has a$25,864 debit balance, but its July bank statement shows a $27,654cash balance. Check No. 3031 for $1,310 and Check No. 3040 for $647were outstanding on the June 30 bank reconciliation. Check No. 3040is listed with the July canceled checks, but Check No. 3031 is not.Also, Check No. 3065 for $431 and Check No. 3069 for $2,078, bothwritten in July, are not among the canceled checks on the July 31statement. In comparing the canceled checks on the bank statementwith the entries in the accounting records, it is found that CheckNo. 3056 for July rent expense was correctly written and drawn for$1,240 but was erroneously entered in the accounting records as$1,230. The July bank statement shows the bank collected $9,500cash on a noninterest-bearing note for Branch, deducted a $48collection expense, and credited the remainder to its account.Branch had not recorded this event before receiving the statement.The bank statement shows an $805 charge for a $795 NSF check plus a$10 NSF charge. The check had been received from a customer, EvanShaw. Branch has not yet recorded this check as NSF. The Julystatement shows a $14 bank service charge. It has not yet beenrecorded in miscellaneous expenses because no previous notificationhad been received. Branch’s July 31 daily cash receipts of $10,652were placed in the bank’s night depository on that date but do notappear on the July 31 bank statement. Problem 6-4A Part 1 Required:1. Prepare the bank reconciliation for this company as of July 31,2017. 2. Prepare the journal entries necessary tobring the company’s book balance of cash into conformity with thereconciled cash balance as of July 31, 2017. (If no entryis required for a transaction/event, select "No journal entryrequired" in the first account field.)

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BRANCH COMPANY
Bank Reconciliation
31-Jul-17
Bank statement balance $27,654 Book balance       25,864
Add: Add:
Deposit of July 31             10,652 Proceeds of note less collection charge
9500-48
      9,452
      10,652         9,452
      38,306       35,316
Deduct: Deduct:
Check No. 3031               1,310 NSF check including fee          805
Check No. 3065                  431 Service charge            14
Check No. 3069               2,078 Error (Check 3056)            10
        3,819            829
Adjusted bank balance       34,487 Adjusted book balance       34,487
Transaction General Journal Debit Credit
a. No journal entry required
b. No journal entry required
c. Rent expense               10
Cash                 10
d. Cash          9,452
Collection expense               48
Notes receivable            9,500
e. Accounts receivable—E. Shaw             805
Cash               805
f. Miscellaneous expenses               14
Cash                 14
g. No journal entry required

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