Question

The following information pertains to Cullumber Company. 1 Cash balance per books, August 31, $7,374. 2. Cash balance per bank, August 31, $7,338. 3. Outstanding checks, August 31, $690. 4. August bank service charge not recorded by the depositor $42. 5. Deposits in transit, August 31, $2,810. In addition, $2,126 collected for Cullumber Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Cullumber Company Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.) CULLUMBER COMPANY Bank Reconciliation Journalize the adjusting entries at August 31 on the books of Cullumber Company

Answer 1

Answer:

Explanation:

Bank reconciliation

Bank cash balance 7,338

Add: Deposit in transit 2,810

Less: Outstanding check 690

Adjusted cash balance 9,458

Cash balance per books 7,374

Add: Electronic bank transfer received by bank 2,126

Less: Bank service charges 42

Adjusted cash balance 9,458

Dr Cash 2,126

Cr Accounts receivable 2,126

Dr Bank service charges expense

Cr Cash 42