LO5 P7-4A Bank Reconciliation on July 31, Arthur Company’s Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $10,170.62. A comparison of returned checks and bank advices revealed the following:Deposits in transit July 31 amounted to $3,316.122. Outstanding check July 31 totaled $1,251.123. The bank erroneously charged a $215 check of Solomon Company against the Arthur bank accountA $15 bank service charge has not yet been recount Arthur CompanyArthur neglected to record $4,000 borrowed from the bank on a 10 percent six-month note. The bank statement shows the $4,000 as a depositIncluded with the returned check is a memo indicating that J.Martin’s check for $610 had been returned NSF. Martin, a customer, has sent the check to pay an account of $660 less a $50 discountArthur company recorded a $107 payment for repairs as $1,070 Requireda. Prepare a bank reconciliation for Arthur Company at July 31

Bank reconciliation is the statement that is prepared to reconcile the balance of the bank book and…

Answered: Bank Reconciliation on July 31, Arthur…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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LO5 P7-4A Bank Reconciliation on July 31, Arthur Company’s Cash in Bank account had a balance of $8,112.62. On that date, the bank statement indicated a balance of $10,170.62. A comparison of returned checks and bank advices revealed the following:

Deposits in transit July 31 amounted to $3,316.12
2. Outstanding check July 31 totaled $1,251.12
3. The bank erroneously charged a $215 check of Solomon Company against the Arthur bank account
A $15 bank service charge has not yet been recount Arthur Company
Arthur neglected to record $4,000 borrowed from the bank on a 10 percent six-month note. The bank statement shows the $4,000 as a deposit
Included with the returned check is a memo indicating that J.Martin’s check for $610 had been returned NSF. Martin, a customer, has sent the check to pay an account of $660 less a $50 discount
Arthur company recorded a $107 payment for repairs as $1,070

Required

a. Prepare a bank reconciliation for Arthur Company at July 31

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